What price change would lead to a margin call

Reference no: EM13255448

A company enters into a long futures contract to buy 5,000 bushels of wheat for 250 cents per bushel. The initial margin is $3,000 and the maintenance margin is $2,000.

a. If futures price becomes 260 cents per bushel, what will be the cumulative gain?

b. What price change would lead to a margin call?

Reference no: EM13255448

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