Consider the following information: On May 1 Party A trades on the futures exchange to buy one oats contract of 10000 bushels for delivery in September. Party B has complimentary requirements. The price is $2 per bushel. Assume that the contract closes on May 2 at 190 cents per bushel. Assume the initial margin was $3000 and the maintenance margin $2500. Assume further that on May 3, the price has dropped to $1.80 per bushel. The price at which a maintenance margin call will be received is equal to:
A.
A. $2500. |
B.
B. $3000. |
C.
C. $500. |
参考答案:A
解析:When the losses incurred leave an equity that is less than the maintenance margin of $2500, the trader will receive a margin call.