A Futures Contract Covers 5000 Pounds with a Minimum Price

question 17

Multiple Choice

A futures contract covers 5000 pounds with a minimum price change of $0.01 is sold for $31.60 per pound.If the initial margin is $2,525 and the maintenance margin is $1,000,at what price would there be a margin call?

• A)31.91
• B)32.11
• C)31.29
• D)31.09
• E)31.80

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Definitions:

Muscle Contraction

The process of muscle fibers shortening or tensing, leading to movement or the exertion of force.

Constant Force

A force that remains the same in magnitude and direction over a period of time when acting on an object.

Static Training

A form of exercise involving muscle contractions without visible movement in the angle of the joint, focusing on strength.

Isometric Training

Physical training that involves the static contraction of a muscle without any visible movement in the angle of the joint.