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Calculate the price level

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Reference no: EM133069024

Suppose you are short 21 futures contracts of Silver (contract size = 5000 oz.) The futures price is 21.05 per ounce. The initial margin is: $9,900 per contract, the maintenance margin is $9,000 per contract.

a) At what price level would you receive a margin call?

b) Calculate the price level that would allow you to withdraw $20,000 from your margin account?

Reference no: EM133069024

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