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A trader buys two July futures contracts on orange juice. Each contract is for the delivery of 15,000 pounds. The current futures price is 160 cents per pound, the initial margin is $6,000 per contract, and the maintenance margin is $4,500 per contract. What price change would lead to a margin call?Under what circumstance can $2000 be withdrawn from the account?

asked
User Makach
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9.1k points

1 Answer

4 votes

Hope this helps. Enjoy! Explanation is provided.

A trader buys two July futures contracts on orange juice. Each contract is for the-example-1
answered
User Zhiyuan Sun
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8.3k points
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