You Purchased Two Futures Contracts on Soybeans at a Price

question 14

Multiple Choice

You purchased two futures contracts on soybeans at a price quote of 1344′0. The initial margin requirement is $4,750 per contract and the maintenance margin is $3,500 per contract. The contract quantity is 5,000 bushels and the price quote is in cents per bushel. What is the lowest the price quote can go before you receive a margin call?

• A)1314′0
• B)1315′0
• C)1319′0
• D)1322′0
• E)1325′0

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Definitions:

Carl Rogers

An influential psychologist who developed client-centered therapy and emphasized the importance of the self-concept in understanding human behavior.

Ivan Pavlov

A Russian physiologist known for his work in classical conditioning, demonstrating how stimuli can trigger conditioned responses in dogs.

Positive Reinforcement

A behavioral strategy that involves the addition of a rewarding stimulus following a desired behavior, aimed at increasing the likelihood of the behavior’s recurrence.

Negative Reinforcement

A behavioral principle where the removal of an adverse stimulus strengthens or increases the likelihood of a desired behavior.