Suppose the current price for coffee for delivery in December is $1.3890 per pound. Each contract is for 37,500 pounds. Initial margin is $5000 and maintenance margin is 2700 on what day will long side get a margin call if over the next 5 days the futures price evolves as follow

 Day    Futures Price

1.       $1.4110

2.      $1.4290

3.      $1.3800

4.      $1.3165

5.      $1.3175

Answer rating: 100% (QA)

To determine on which day the long side will get a margin call we need to calculate the margin balan... View the full answer