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How much margin money must send to broker

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Problem 1: Assume that the initial margin for trading wheat futures is $2,500 per contract, and the maintenance margin is $2,000. You sell two contracts of May wheat futures today and deposit $5,000 with your broker. The next day the price of May wheat falls 3 cents per bushel. Will you have a margin call and, if so, how much margin money must you send to your broker? The following day, the price of May wheat rises 25 cents per bushel. Will you have a margin call and, if so, how much margin money must you send to your broker?

Reference no: EM132784634

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