Calculate cumulative losses or gains if you buy (long) 4corn futures contracts @ $5.96/bushel one day and settlement prices will be at $5.50/bushel corn on the later day you evaluate your position. Initial and maintenance margins for corn are $2,700 and $2,000 per contract. Compute gains or losses and then compare your computed number to the following possible answers.
A. A loss of $9,200.
B. A gain of $9,200.
C. A gain of $10,800.
D. A loss of $10,800.
Ans: A. A loss of $9,200.
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