Yesterday, you entered into a futures contract to buy euro at $1.50/€. Your initial margin was 45% and your maintenance margin is 30%. At what threshold settlement price (use 4 decimal places) do you get a margin call?

Answer is 1.1785.

Refer below for the explanation.

Explanation:

Euro at $1.50/€.

Initial 45%

Maintenance 30%

Price = Initial price * (1 - margin / 1 - maintenance)

Put the values provided in te question,

= 1.50 * (1-45% / 1-30%)

=1.50 * (0.55/0.70)

=1.1785