Question: The initial margin requirement for a futures contract is $6,850 per contract, while the maintenance margin requirement is $4,615 per contract. If the account's equity

The initial margin requirement for a futures contract is $6,850 per contract, while the maintenance margin requirement is $4,615 per contract. If the account's equity is $3,890 per contract, what can we conclude about the margin status of the account? There will not be a margin call since the account's equity is less than the maintenance margin requirement. The account can still get into one additional futures contract. There will not be a margin call since the account's equity is less than the initial margin requirement. There will be a margin call
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
