Illy Caffe has surplus coffee and enters into a short futures contract to sell 5,000 units of Coffee commodity for $70 per unit The initial margin is $40,000 and the maintenance margin is $30,000 (Show Work) Price Sold at Number Sold Initial Margin Maintenance Margin Short Futures Contract $70 5,000 $40,000 $30,000 What is the futures price per unit above which there will be a margin call

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Question: Illy Caffe has surplus coffee and enters into a short futures contract to sell 5,000 units of Coffee commodity for $70 per unit. The initial

Illy Caffe has surplus coffee and enters into a short futures contract to sell 5,000 units of Coffee commodity for $70 per unit. The initial margin is $40,000 and the maintenance margin is $30,000. (Show Work)

	Price Sold at	Number Sold	Initial Margin	Maintenance Margin
Short Futures Contract	$70	5,000	$40,000	$30,000

What is the futures price per unit above which there will be a margin call?

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