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CFA Institute CFA-Level-I Exam - Topic 2 Question 32 Discussion

A trader has a long position in a wheat contract.What is the price at which the trader will receive a maintenance margin call?
D) $1.75.
A) $1.90.
B) $2.05.
C) $2.25.

CFA Institute CFA-Level-I Exam - Topic 2 Question 32 Discussion

Actual exam question for CFA Institute's CFA-Level-I exam
Question #: 32
Topic #: 2
[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?

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Suggested Answer: D

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Shantell
2 days ago
I’m not entirely sure, but I think the maintenance margin call is often around $1.75 for commodities. That seems low enough.
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Nikita
7 days ago
I feel like we practiced a similar question where the maintenance margin was around $2.00. Maybe it's close to that?
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Aide
12 days ago
I think the maintenance margin call price is usually set below the initial margin, but I can't remember the exact calculation for wheat contracts.
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