Problem $2\mathrm{.}11.$

A trader buys two July futures contracts on frozen orange juice. Each contract is for the delivery of $15,000$ pounds. The current futures price is $120$ cents per pound, the initial margin is $$6,000$ per contract, and the maintenance margin is $$4,500$ per contract. What price change would lead to a margin call? Under what circumstances could $$2,000$ be withdrawn from the margin account?

There is a margin call if more than $$1,500$ is lost on one contract. This happens if the futures price of frozen orange juice falls by more than $10$ cents to below $110$ cents per $1b.$ $$2,000$ can be withdrawn from the margin account if there is a gain on one contract of $$1,000.$

Problem $2\mathrm{.}11.$

A trader buys two July futures contracts on frozen orange juice. Each contract is for the delivery of $15,000$ pounds. The current futures price is $120$ cents per pound, the initial margin is $$6,000$ per contract, and the maintenance margin is $$4,500$ per contract. What price change would lead to a margin call? Under what circumstances could $$2,000$ be withdrawn from the margin account?

Why more than $10110$cent? There is a margin call if more than $$1,500$ is $105t$ on one contract. This happens if the futures price of frozen orange juice falls by more than $10$ cents to below $110$ cents per $lb,$$$2,000$ can be withdrawn from the margin account if there is a gain on one contract of $$1,000.$ This will

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