3. A trader buys two July futures contracts on frozen orange juice. Each contractis for the delivery of 15,000 pounds. The current futures price is 160 cents perpound, the initial margin is $6,000 per contract, and the maintenance marginis $4,500 per contract. What price change would lead to a margin call? -

A margin call is an admonition that you want to bring your margin account once again into good…

is for the delivery of 15,000 pounds. The current futures price is 160 c pound, the initial margin is $6,000 per contract, and the maintenance ic $4 5 00 por oontraot What priee obange would lead to a margin oall

is for the delivery of 15,000 pounds. The current futures price is 160 c pound, the initial margin is $6,000 per contract, and the maintenance ic $4 5 00 por oontraot What priee obange would lead to a margin oall

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. 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 160 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? -

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