What price change would lead to a margin call

Reference no: EM133251877

Question - Abrader sells five futures contracts on gold. The current futures price is $1600 per ounce. Each contract is for the delivery of 100 ounces. The initial margin is $10,000 per contract and the maintenance margin is $7,000 per contract. What price change would lead to a margin call? Under what circumstances could $2,500 be withdrawn from the margin account?

Reference no: EM133251877

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