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Question
An investor controls contracts on five 5,000 bushel futures contracts on grain, at a price of $3 per bushel. The margin requirement is 5%, and the maintenance margin is 80%. How much would the price per bushel have to change to provide a $750 profit?$0.03
Feedback: Refer to the Application example. 5 contracts x 5,000 bushels each = 25,000 bushels
25,000 bushels x ? price change = $750
?
Answer
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