How much money would you need for the initial margin deposit

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Reference no: EM133616013

Problem: Futures contract futures price for December delivery = $4.75/bu brokerage fee = $0.01/bu (cost to trade futures contacts) contract size = 5,000 bushels initial margin deposit = $2,500 per contract maintenance margin = $2,500 per contract; If you decide to use futures contracts to sell 30,000 bushels, how much money would you need for the initial margin deposit?

Reference no: EM133616013

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