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Given a 5,000 Bushel Futures Contract on Grain at a Price

Question 61

Short Answer

Given a 5,000 bushel futures contract on grain at a price of $3.25 per bushel, a margin requirement of 5%, and a maintenance margin of 80%, your customer wants to know (for a single contract) how much would the price per bushel have to fall before additional margin would be required?

Correct Answer:

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$0.0325 per bushel
Explanation: Refer to...

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