Will purchased 3 futures contracts on corn.The contract size is 5,000 bushels and the price is quoted in cents per bushel.Assume the initial margin requirement is 4.5 percent of the contract value.What is the amount of the initial margin if the futures quote is 624?
A) $140.40
B) $421.20
C) $1,404
D) $2,808
E) $4,212

Question

Quizplus · Accepted Answer

Initial margin = 3 × 5,000 × $6.24 × 0.045 = $4,212

Will Purchased 3 Futures Contracts on Corn