You have a long position in one soybean futures contract. The initial margin was $3,250 and the maintenance margin is $1,750. At the close of trading yesterday, the futures price was $8.03 per bushel and the balance in your margin account was $4,500. Today, the settlement price for soybean futures is $7.33. Will you receive a margin call and what deposit will you be required to make? O $1,750 no margin call; $0 $2,250 O $2,750
You have a long position in one soybean futures contract. The initial margin was $3,250 and the maintenance margin is $1,750. At the close of trading yesterday, the futures price was $8.03 per bushel and the balance in your margin account was $4,500. Today, the settlement price for soybean futures is $7.33. Will you receive a margin call and what deposit will you be required to make? O $1,750 no margin call; $0 $2,250 O $2,750
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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Transcribed Image Text:You have a long position in one soybean futures contract. The initial margin was $3,250 and the maintenance margin is $1,750. At the
close of trading yesterday, the futures price was $8.03 per bushel and the balance in your margin account was $4,500. Today, the
settlement price for soybean futures is $7.33. Will you receive a margin call and what deposit will you be required to make?
$1,750
O no margin call; $0.
O $2,250
$2,750
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