Futures price for December delivery = $4.75/bu brokerage fee = $0.01/bu (cost to trade futures contacts) contract

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Futures price for December delivery = $4.75/bu

brokerage fee = $0.01/bu (cost to trade futures contacts)

contract size = 5,000 bushels

initial margin deposit = $2,500 per contract

maintenance margin = $2,500 per contract;

If you decide to use futures contracts to sell 30,000 bushels, how much money would you need for the initial margin deposit? Show your calculations clearly.

Related Book For answer-question

Financial Reporting And Analysis

ISBN: 9781260247848

8th Edition

Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer

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Posted Date: Dec 26, 2023 11:14 PM

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Futures price for December delivery = $4.75/bu brokerage fee = $0.01/bu (cost to trade futures contacts) contract

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Financial Reporting And Analysis

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