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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?

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Suggested Answer: D

Contribute your Thoughts:

Antonette
15 days 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
16 days ago
I'm not sure, but I think it might be $1.90. Can someone confirm?
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Minna
16 days 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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Ernie
20 days 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
27 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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Nida
9 days ago
C) That's correct, the maintenance margin call would be at $2.25.
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Hannah
10 days ago
B) $2.25 is the correct answer.
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Hana
12 days ago
A) $2.25.
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Brice
1 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
1 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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Xochitl
1 days ago
Exactly. It's important for traders to be aware of maintenance margin levels to avoid margin calls.
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Mose
2 days ago
So, if the price of wheat drops below $2.05, the trader will need to add more funds to their account.
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Fanny
3 days ago
Yes, you are correct. That is the price at which the trader will receive a maintenance margin call.
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Art
10 days ago
I believe the answer is B) $2.05.
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Arminda
1 months ago
I think the price for a maintenance margin call is $2.05.
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