Question 40 (4 points) On Tuesday, an elevator enters into the corn futures market with 1 contract at a price of $6.50/b

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Question 40 4 Points On Tuesday An Elevator Enters Into The Corn Futures Market With 1 Contract At A Price Of 6 50 B 1 (35.47 KiB) Viewed 45 times

Question 40 (4 points) On Tuesday, an elevator enters into the corn futures market with 1 contract at a price of $6.50/bu to protect the purchase price of corn. The initial margin is $1,280 per contract and the minimum maintenance margin is $1,160 per contract. On Wednesday, the price decreases to $6.40/bu. Does the elevator need to make a margin call on Wednesday? And if so, for how much? 4 Show your work along the way for partial credit