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Author Question: Logan sold a corn futures contract using the initial margin of $2,700. His maintenance margin is ... (Read 132 times)

curls713

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Logan sold a corn futures contract using the initial margin of $2,700.  His maintenance margin is $2,000.  The price of corn began to rise in early summer, but Logan wants to keep his contract.  When his margin falls below $2,000 (minimum maintenance)
◦ his contract will be automatically sold or canceled.
◦ he does not need to do anything since the most he can lose is $2,700.
◦ he will need to deposit enough money in his margin account to bring the balance up to $2,000.
◦ he will need to deliver the corn immediately.


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Marked as best answer by curls713 on Mar 29, 2022

ekattan2

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curls713

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Reply 2 on: Mar 29, 2022
YES! Correct, THANKS for helping me on my review


Sarahjh

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Reply 3 on: Yesterday
Excellent

 

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