Your Broker Requires an Initial Margin of $6,075 Per Futures

question 29

Multiple Choice

Your broker requires an initial margin of $6,075 per futures contract on wheat and a maintenance margin of $4,500 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 786.Today,the settlement quote is 808.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:

Nonthreatening Environment

A safe and comfortable setting that does not cause fear or stress, fostering open communication and collaboration.

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Information provided regarding aspects of one's performance or understanding, intended to reinforce positives or promote improvement.

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The anticipated behaviors and actions associated with a particular position or status within a group or society.

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Taking initiative by acting in advance of future situations or problems, rather than just reacting to them as they occur.