.ooo AT&T; 1:29 1:28 A trader buys two July futures contracts on frozen orange j
ID: 1102280 • Letter: #
Question
.ooo AT&T; 1:29 1:28 A trader buys two July futures contracts on frozen orange juice. Each contract is for the delic of 15,000 pounds. The current futures price is 160 cents per pound, the initial margin is $6,000 per contract, and the maintenance margin is $4,500 per contract. What price change would lead to a margin call? Under what circumstances could $2,000 be withdrawn from the margin account? 2. Generally speaking, higher income countries tend to have less income inequality than low income countries, however this does not always hold true. What could cause a low income country to have low income inequality.Explanation / Answer
If a country is low income, the dispersion of income will be low ie the difference between the maximum earner and a minimum earner will be low. Hence, the inequality will be low.
Whereas if the country has higher income, the difference between the minimum earners and maximum earners will rise, thus leading to an increase in the value of the inequality.
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