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Author Question: Fred has just sold short 3 contracts of May wheat on the CBT. These are 5,000 bushel contracts. The ... (Read 55 times)

agstelzer01

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on: Mar 29, 2022

Question 1

All futures contracts are traded on a margin basis. What does "margin" mean, and how does the use of margin affect the inherent risk-return nature of the futures market?

Question 2

Fred has just sold short 3 contracts of May wheat on the CBT. These are 5,000 bushel contracts. The initial deposit is $1,500 per contract with a maintenance margin of $1,200.
(a)What is Fred's total initial margin?
(b)How much of an increase in the price of wheat is necessary to cause a margin call?
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Marked as best answer by agstelzer01 on Mar 29, 2022

bball_babe_123

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Reply #1 on: Mar 29, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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agstelzer01

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Reply 2 on: Mar 29, 2022
Thanks for the timely response, appreciate it

bblaney

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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