A timber farmer has entered into two long futures contracts to buy wood in August for $15.80
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Question:
A timber farmer has entered into two long futures contracts to buy wood in August for $15.80 per tonne. The size of each contract is 1,000 tons. The initial margin is $3,000 and the maintenance margin is $2,000 per contract. Which of the following futures prices represents the smallest change that will allow withdrawing $2,000 from the margin account?
O $13.80
O $14.80
O $15.80
O $16.80
O $17.80
Expert Answer:
To determine the smallest change in the futures price that will allow withdrawing 2000 from the marg... View the full answer
Related Book For 
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
Posted Date:
