A company enters into a short futures contract to sell 1,000 units of a commodity for $60

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A company enters into a short futures contract to sell 1,000 units of a commodity for $60 per unit. The initial margin is $6,000 and the maintenance margin is $4,500. If future price rise to $62 in next day, what’s the variation margin?

	A.	$0
	B.	$500
	C.	$1500
	D.	$2000

Related Book For answer-question

Vector Mechanics for Engineers Statics and Dynamics

ISBN: 978-0073398242

11th edition

Authors: Ferdinand Beer, E. Russell Johnston Jr., David Mazurek, Phillip Cornwell, Brian Self

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Posted Date: Sep 28, 2022 06:53 AM

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A company enters into a short futures contract to sell 1,000 units of a commodity for $60

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Vector Mechanics for Engineers Statics and Dynamics

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