Solution-What change in futures price will lead to margin

What change in futures price will lead to margin call

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Question

Suppose that you enter into a short futures contract on copper when the futures price is $7,260 per ton. The size of the contract is 5,000 tonnes. The initial margin is $100,000 and the maintenance margin is $75,000.

a. What change in the futures price will lead to a margin call?

b. What price change will allow you to withdraw $6,000 from the margin account?

Reference no: EM133227667

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What change in futures price will lead to margin call

Reference no: EM133227667

Reference no: EM133227667

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