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

Question 82

Essay

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

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Contract at 5,000 bushels @ $3.25 per bu...

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