Will Purchased 3 Futures Contracts on Corn

question 53

Multiple Choice

Will purchased 3 futures contracts on corn.The contract size is 5,000 bushels and the price is quoted in cents per bushel.Assume the initial margin requirement is 4.5 percent of the contract value.What is the amount of the initial margin if the futures quote is 624?

• A) $140.40
• B) $421.20
• C) $1,404
• D) $2,808
• E) $4,212