CFA Institute Exam CFA-Level-I Topic 1 Question 13 Discussion

Actual exam question for CFA Institute's CFA-Level-I exam

Question #: 13
Topic #: 1

[All CFA-Level-I Questions]

A trader has a long position in a wheat contract.

What is the price at which the trader will receive a maintenance margin call?

A$1.90.

B$2.05.

C$2.25.

D$1.75.

Show Suggested Answer

Suggested Answer: D

by Amalia at Mar 07, 2025, 01:47 AM

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Antonette

4 months ago

I remember studying this, and I'm pretty sure it's $1.75. That's the price for a maintenance margin call.

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Benedict

4 months ago

I'm not sure, but I think it might be $1.90. Can someone confirm?

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Minna

4 months ago

This question is a piece of cake! A trader long in wheat would get a margin call if the price drops below the maintenance level. Easy peasy, lemon squeezy.

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Kenneth

2 months ago

C) $2.25.

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Glendora

3 months ago

The trader will receive a maintenance margin call if the price drops below the maintenance level.

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Mozell

3 months ago

A) $1.90.

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Ernie

4 months ago

I believe it's $2.25. That's the price at which the trader will receive a maintenance margin call.

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Mona

4 months ago

C) $2.25 sounds about right. The maintenance margin is typically set at a level to provide a buffer before the position becomes too risky.

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Nida

3 months ago

C) That's correct, the maintenance margin call would be at $2.25.

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Hannah

4 months ago

B) $2.25 is the correct answer.

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Hana

4 months ago

A) $2.25.

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Brice

4 months ago

D) $1.75 seems too low. The maintenance margin call would be triggered at a higher price to give the trader a chance to add more funds before getting liquidated.

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Mary

4 months ago

I think the answer is B) $2.05. That's the point where the trader's position would be under-margined and they'd need to add more funds to their account.

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