Assume you are a soybean producer. On June 20, you decide to hedge the sale of a portion of your expected bean crop for delivery in the fall. Currently, November futures are trading at $7.20 per bushel. The next trading day, the November soybean contract settles at $6.95/bu. How much money is put into or taken out of your margin account by the clearing corporation? The initial and maintenance margin for soybean hedgers is $1000, and there are 5000 bushels per contract. Put your answer in terms of a positive (money put in) or a negative (money taken out) number.

Answer rating: 100% (QA)

To calculate the change in your margin account you can use the following formul... View the full answer