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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