Your broker requires an initial margin of $878 per futures contract on wheat and a maintenance margin of $650 per contract. Wheat futures contracts are based on 5,000 bushels and quoted in cents per bushel. You sold 6 wheat futures contracts at a price quote of 385 cents per bushels. Today, the settlement quote is 390 cents per bushels. Will you receive a margin call and if so, for what amount (6 contracts totally) ? Assume you have not received any previous margin calls. Select one: a. Call for $22 b. Call for $1,500 c. No margin call d. Call for $250 e. Call for $132
+5
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Your broker requires an initial margin of $878 per futures contract on wheat and a maintenance margin of $650 per contract. Wheat futures ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Home » Business » Your broker requires an initial margin of $878 per futures contract on wheat and a maintenance margin of $650 per contract. Wheat futures contracts are based on 5,000 bushels and quoted in cents per bushel.