A company enters into a short futures contract to sell 8,000 units of a commodity for $0.50 per unit. The initial margin is $5000 and the maintenance margin is $3000. When will there be a margin call? (Round your answer to the nearest cent.) a. $0.63 b. $0.72 c. $0.65 d. $0.75
A company enters into a short futures contract to sell 8,000 units of a commodity for $0.50 per unit. The initial margin is $5000 and the maintenance margin is $3000. When will there be a margin call? (Round your answer to the nearest cent.) a. $0.63 b. $0.72 c. $0.65 d. $0.75
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A company enters into a short futures contract to sell 8,000 units of a commodity for $0.50 per unit. The initial margin is $5000 and the maintenance margin is $3000. When will there be a margin call? (Round your answer to the nearest cent.)
a.
$0.63
b.
$0.72
c.
$0.65
d.
$0.75
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