Solved: 1 briefly describe what a futures contract is 2 one, Finance Basics

1 briefly describe what a futures contract is 2 one

1) Briefly describe what a futures contract is.

2) One futures contract on orange juice is equal to 15,000 lbs. of juice. Recently, the contract was trading at around $ 1.50/lb. If the initial margin for an orange juice contract is $1,890, approximately what is the leverage an investor enjoys by trading this commodity?

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