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Given a 5,000 Bushel Futures Contract on Grain at a Price

question 73

Essay

Given a 5,000 bushel futures contract on grain at a price of $3.25 per bushel,a margin requirement of 5 percent and a maintenance margin of 80 percent,your customer wants to know on a single contract,how much would the price per bushel have to fall before additional margin would be required.


Definitions:

Duty of Competence

The legal ethical requirement that lawyers maintain the knowledge, skill, and ability to provide competent representation to their clients.

Legal Profession

A field of occupation that includes lawyers, judges, paralegals, and other professionals who provide services related to the law.

Attorney-Client Confidentiality

A legal principle that ensures communication between a lawyer and their client remains private and cannot be disclosed without the client's permission.

Rule of Competence

A principle stating that legal professionals must possess the necessary skills and knowledge to effectively represent their clients.

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