Your Broker Requires an Initial Margin of $4,500 Per Futures

question 40

Multiple Choice

Your broker requires an initial margin of $4,500 per futures contract on soybeans and a maintenance margin of $3,000 per contract.Soybean futures contracts are based on 5,000 bushels and quoted in cents per bushel.Yesterday,you bought 5 soybean futures contracts at the closing settlement price of 1372.Today,the settlement quote is 1340.All margin calls restore margin levels to their initial margin level.Will you receive a margin call and if so,for what amount?

• A) no margin call
• B) call for $1,425
• C) call for $2,487
• D) call for $4,650
• E) call for $8,000

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