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 $4000 and the maintenance margin is $3000. What is the futures price per unit, above which there will be a margin call?
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The Answer of 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 $4000 and the maintenance margin is $3000. What is the futures price per unit, above which there will be a margin call?
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A Company Enters into a Short Futures Contract to Sell