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Plutonium Is Trading at a One-Year Futures Price of $5,000

Question 1

Multiple Choice

Plutonium is trading at a one-year futures price of $5,000 per gram.A futures contract comprises 100 grams.The initial margin is $100,000 and the maintenance margin is $80,000.You are short one futures contract.There is a margin call when the price per gram of plutonium changes to


A) $4,750
B) $4,900
C) $5,100
D) $5,250

Correct Answer:

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