What spot price level of silver will a margin call occur

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Problem 1: Suppose that you enter into a short futures contract to sell July silver for Rs. 5.20 per ounce on the MCX. The size of the contract is 5000 ounces. The initial margin is Rs. 4000 & the maintenance margin is Rs. 3000. At what spot price level of silver will a margin call occur?

Reference no: EM132825672

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