Suppose that you enter into a short futures contract to sell July silver for $17.20 per ounce.
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Suppose that you enter into a short futures contract to sell July silver for $17.20 per ounce. The size of the contract is 5,000 ounces. The initial margin is $4,000, and the maintenance margin is $3,000. What change in the futures price will lead to a margin call? What happens if you do not meet the margin call?
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There will be a margin call when 1000 has been lost from th...View the full answer
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