One futures corn contract commits the buyer to purchase 5000 bushels of corn. Suppose that you purchase a May Corn contract at $670/bushel two days ago on November 14 and plan to close the position 10 days later. The initial margin required by your brokerage firm is 10%. The settlement price for the last two days are:

November 14: $675

November 15: $676

What will be the ending balance of your account on November 15?

Answer rating: 100% (QA)

The ending balance of the account on November 15 will be 22650 Explanation The May Corn contract h... View the full answer