A speculator enters into a long position in ten May wheat futures contracts at $5.085 per bushel. The contract size is 5,000 bushels. The initial margin is $1,869 per contract, and the maintenance margin is $1,650 per contract. Calculate the futures price F such that, if the futures price drops below F, then the trader receives a margin call.

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To calculate the futures price F we need to find the price at which the traders equity the value of ... View the full answer