A company enters into a short futures contract to sell 5000


Question: A company enters into a short futures contract to sell 5,000 bushels of wheat for 250 cents per bushel. The initial margin as stipulated by the exchange is $3,000 and the maintenance margin is $2,000 for the transaction. What price change would lead to a margin call?

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Finance Basics: A company enters into a short futures contract to sell 5000
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