Answer-first summary for fast verification
Answer: July 1, July 2 and July 7 only
## Explanation To determine when margin calls occur, we need to track the cumulative gains/losses from the initial position. Since the question doesn't specify initial margin requirements, we'll analyze the pattern of losses: - **June 29**: Starting point (0 gain) - **June 30**: +700 (cumulative: +700) - **July 1**: -6,600 (cumulative: -5,900) - **Large loss, likely margin call** - **July 2**: -3,100 (cumulative: -9,000) - **Continued losses, margin call** - **July 6**: +2,800 (cumulative: -6,200) - Recovery - **July 7**: -3,000 (cumulative: -9,200) - **Significant loss again, margin call** - **July 8**: -1,000 (cumulative: -10,200) - Loss but smaller The pattern shows margin calls would likely occur on days with substantial losses that push the account below maintenance margin levels: July 1, July 2, and July 7.
Author: LeetQuiz Editorial Team
Ultimate access to all questions.
You are given the following price history for the December silver futures:
| Day | Futures Price | Daily Gain |
|---|---|---|
| June 29 | 18.62 | 0 |
| June 30 | 18.69 | 700 |
| July 1 | 18.03 | -6600 |
| July 2 | 17.72 | -3100 |
| July 6 | 18.00 | 2800 |
| July 7 | 17.70 | -3000 |
| July 8 | 17.60 | -1000 |
On which days did John receive a margin call?
A
July 1 only
B
July 1 and July 2 only
C
July 1, July 2 and July 7 only
D
July 1, July 2 and July 8 only
No comments yet.