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CFA Level I Pricing and Valuation of Futures Contracts question

Derivatives / Pricing and Valuation of Futures Contracts

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Pricing and Valuation of Futures Contracts sample question

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Derivatives

Pricing and Valuation of Futures Contracts

Tomas Novak buys two silver futures contracts at USD 24.80 per ounce; each contract covers 5,000 ounces. The initial margin is USD 9,900 per contract and the maintenance margin is USD 9,000 per contract, and Novak deposits exactly the initial margin. The settlement price below which Novak will receive a margin call is closest to:

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