You Sell 10 Futures Contracts Where Each Future Represents 22,000

question 29

Multiple Choice

You sell 10 futures contracts where each future represents 22,000 gallons. The initial margin is $3,000, and the maintenance margin is $2,100. At what price change will you receive a margin call?

• A) A price decrease of $0.041.
• B) A price decrease of $0.037.
• C) A price decrease of $0.034.
• D) A price increase of $0.041.
• E) A price increase of $0.037.

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Definitions:

Actionable Misrepresentation

False or misleading statements that lead to a legal cause of action because they result in harm or losses.

Sales Puffery

Exaggerated or hyperbolic statements made by a salesperson, regarded as harmless and not legally binding, used to spark interest in a product or service.

Worldview

People’s different beliefs about the world around them.

Multiculturalism

A social and political approach advocating for the respect, acknowledgement, and accommodation of cultural diversity within a society.