company enters into 2 long futures contracts on a commodity for 200 cents per unit. Each contract is on 10,000 units of the commodity. The initial margin per contract is $2,500 and the maintenance margin per contract is $2,000. At what futures price will the balance in the margin account equal maintenance margin? a. 205 cents. b. 195 cents. c. 190 cents.

Essentials Of Investments
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Chapter1: Investments: Background And Issues
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A company enters into 2 long futures contracts on a commodity for 200 cents per unit. Each contract is on 10,000 units of the commodity. The initial margin per contract is $2,500 and the maintenance margin per contract is $2,000.

At what futures price will the balance in the margin account equal maintenance margin?

 

a.

205 cents.

b.

195 cents.

c.

190 cents. 

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