Question: Below is the contract specification for the live cattle futures traded on the CME: Contract Name Quoted Units Trading Unit Minimum Fluctuation (tick size) Initial
Below is the contract specification for the live cattle futures traded on the CME:
| Contract Name | Quoted Units | Trading Unit | Minimum Fluctuation (tick size) | Initial Margin | Maintenance Margin |
| Live Cattle | US cents per pound | 40,000 pounds | 0.025 cent per pound | $1,080 | $800 |
Tom has just sold 10 April contracts at 92.475 cents and has deposited $12,000 into its margin account. Assume that the 10 cattle futures is the only position in his account.
1. At what futures price Toms margin account will be credited with $5,000.
2. At what futures price a margin call will be triggered against Toms margin account.
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