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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Mona

4 days 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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Brice

8 days 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

9 days 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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Arminda

17 days ago

I think the price for a maintenance margin call is $2.05.

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