Multiple Choice
A company enters into a short futures contract to sell 50,000 units of a commodity for 70 cents per unit.The initial margin is $4,000 and the maintenance margin is $3,000.What is the futures price per unit above which there will be a margin call?
A) 78 cents
B) 76 cents
C) 74 cents
D) 72 cents
Correct Answer:
Verified
Correct Answer:
Verified
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