Question 39 (12 points) On Monday, a farmer enters into the corn futures market with 6 contracts at a price of $5.12. Th

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Question 39 12 Points On Monday A Farmer Enters Into The Corn Futures Market With 6 Contracts At A Price Of 5 12 Th 1 (64.21 KiB) Viewed 35 times

Question 39 (12 points) On Monday, a farmer enters into the corn futures market with 6 contracts at a price of $5.12. The initial margin is $2,820 per contract and the minimum maintenance margin is $2,560 per contract. On Tuesday, the futures price increases to $5.19. On Wednesday the future price decreases to $5.17. a. What total amount is put into your margin account on Monday? (2 pts) b. If your margin account falls below you will need to make a margin call. (2 pts) c. What is balance in the margin account on Tuesday? Show your work, including margin calls if needed. (4 pts) d. What is the balance in the margin account on Wednesday? Show your work, including margin calls if needed. (4 pts) You MUST show your work- typing the correct answers without showing any work will result in a score of 3 out of 12 points.