Suppose that you enter into a long contract to buy July silver for $13.57 per ounce on NYMEX. The size of the contract is 5000 ounces. The initial margin is $4,029 per contract, and the maintenance margin is $3,224 per contract. At what price are you going to receive a margin call

price rise = $13.731 or above will be margin call

Explanation:

given data

per ounce = $13.57

maintenance margin = $3,224 per contract

initial margin = $4,029 per contract

maintenance margin = $3,224 per contract

solution

we get loss from margin that is

loss = $4,029 - $3,224

loss = $805

and here price for july silver future contract increase as

silver future contract increase =  

silver future contract increase = $0.161

so when price rise to $13.57 + $0.161

price rise = $13.731 or above will be margin call

say it in english maybe we can