A trader buys two July futures contracts on orange juice. Each contract is for the delivery of
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A trader buys two July futures contracts on orange juice. Each contract is for the delivery of 15,000 pounds. The current futures price is 120 cents per pound, the initial margin is
$6,000 per contract, and the maintenance margin is $4,500 per contract. What price change would lead to a margin call? Under what circumstances could $2,000 be withdrawn from the margin account?
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Margin Call and Withdrawal Analysis 1 Contract details Contracts bought 2 Contract size 15000 pounds Current futures price 120 centspound 2 Initial ma...View the full answer
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Related Book For
Fundamentals Of Futures And Options Markets
ISBN: 9781292422114
9th Global Edition
Authors: John Hull
Question Posted:
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