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The account balance at the outset of hedging strategy in oct. is 80 x2,000 =160,000 $
In Oct’03, firm have 80 outstanding contracts in futures position, which is equivalent to have 2 mil. Lbs. of copper. The initial margin is 160,000$. The maintenance margin is 80 x 1,500 $ =120,000 $. If firm’s account balance.
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