Use the following information for questions 1-2. Suppose that you went long one coffee futures contract at 140.60 a month ago. Each contract is for 37,500 pounds of coffee. Today the price fell by 6.50 cents and settled at 140.30. The initial margin requirement was $3,200 and the maintenance margin requirement is $1,700. You have not had a margin call for the contract.
What's it going to take for you to have a margin call? That is, where does the futures price have to be for you to have a margin call?
Answer: The futures price has to be above / below (circle one) ______ cents
How much is in your margin account today after it's marked-to-market?
Answer: Your margin account currently has a balance of $ ______