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    A company enters into a short futures contract to sell 6,000

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    A company enters into a short futures contract to sell 6,000 bushels of wheat for 450 cents per bushels. The initial margin is $4,000 and the maintenance margin is $3,000. What price change would lead to a margin call? Under what circumstances could $2,000 be withdrawn from the margin account?

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    https://brainmass.com/business/futures/a-company-enters-into-a-short-futures-contract-to-sell-6-000-341024

    Solution Preview

    A margin call is required when $1000 has been lost from the margin account. This will occur when the ...

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    The solution provides detailed explanations and calculations for the problem.

    $2.19

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