What is freds total initial margin

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Reference no: EM13835142

Fred has just sold short 3 contracts of May wheat on the CBT. These are 5,000 bushel contracts. The initial deposit is $1,500 per contract with a maintenance margin of $1,200.

(a) What is Fred's total initial margin?

(b) How much of an increase in the price of wheat is necessary to cause a margin call?

Reference no: EM13835142

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