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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
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? -
Transcribed Image Text: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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