Your Broker Requires an Initial Margin of $6,100 Per Futures

question 69

Multiple Choice

Your broker requires an initial margin of $6,100 per futures contract on wheat and a maintenance margin of $4,400 per contract. Wheat futures contracts are based on 5,000 bushels and quoted in cents per bushel. You sold one wheat futures contract yesterday at the closing settlement price quote of 780. Today, the settlement quote is 802. Will you receive a margin call and, if so, for what amount? All margin calls restore the margin level to its initial level.

• A)no margin call
• B)call for $475
• C)call for $1,100
• D)call for $4,750
• E)call for $11,000

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Definitions:

Fibularis Brevis

A muscle of the lower leg that assists in the eversion and plantar flexion of the foot.

Tibial Tuberosity

A protuberance on the tibia bone in the lower leg that serves as an attachment site for the patellar ligament.

Calcaneus

The large bone in the heel of the foot, forming the foundation of the rear part of the foot.

Antagonistically

Referring to muscles that work in opposition to each other to create movement, such as the biceps and triceps during arm movements.