You purchased two futures contracts on soybeans at a price quote of 1344'0. The initial margin requirement is $4,750 per contract and the maintenance margin is $3,500 per contract. The contract quantity is 5,000 bushels and the price quote is in cents per bushel. What is the lowest the price quote can go before you receive a margin call?
A) 1314'0
B) 1315'0
C) 1319'0
D) 1322'0
E) 1325'0

Question

Quizplus · Accepted Answer

The Answer of You purchased two futures contracts on soybeans at a price quote of 1344'0. The initial margin requirement is $4,750 per contract and the maintenance margin is $3,500 per contract. The contract quantity is 5,000 bushels and the price quote is in cents per bushel. What is the lowest the price quote can go before you receive a margin call?
A) 1314'0
B) 1315'0
C) 1319'0
D) 1322'0
E) 1325'0

You Purchased Two Futures Contracts on Soybeans at a Price