A trader buys two July futures contracts on frozen orange juice. Each contract i

Question

A trader buys two July futures contracts on frozen orange juice. Each contract is for the delivery 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 Under what circumstances could $2,000 be withdrawn from the margin account 1. 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 2.

Explanation / Answer

Answer 2:

The very little income in low income countries has to be distributed which results in low income inequality in low income countries. Most of the population works in petty service jobs. Women and children form a large portion of the world's poor. Female population in this area are generally involved in no income activity and have no control over income of the family. Thus, low income gets distributed equally at first place as income earning capacity of people is low in these countries.

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