On Aug. 11, 2020, Joe purchased 3 futures contracts for corn at 378'2.

On Aug. 11, 2020, Joe purchased 3 futures contracts for corn at 378'2. The initial margin requirement is 10%. Over the next five days, the price of corn futures changed as follows:

Day	Price
1	377'4
2	372'0
3	368'4
4	360'2
5	365'4

Calculate the amount of money in Joe’s account at the end of each day.
If the maintenance margin amount is $5,000 will a margin call occur?
If so, on what day?
If so, how much will Joe be required to deposit into his margin account?

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Expert Solution

jeff jeffy answered 2 years ago

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