What price change would lead to a margin call


Problem

NuFarm, a wheat growing company, enters into a short futures contract to sell 8,000 bushels of wheat for 350 cents per bushel. The initial margin is $7,000 and the maintenance margin is $5,000. What price change would lead to a margin call? Under what circumstances could $1,500 be withdrawn from the margin account?

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Business Management: What price change would lead to a margin call
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