The futures price of a commodity such as wheat is $4.00. The contracts are for 10,000 bushels. The margin requirement is $2,000 and the maintenance margin requirement is

$1,000. You expect the price of the commodity to fall and enter into a contract to sell.

a) How much is the contract worth and how much must you initially remit?

b) If the futures price falls to $3.94, what is the value of the contract? How much do you have in your account?

c) If the futures price rises to $4.04, what is the value of the contract? How much do you have in your account?

d) If the futures price continues to rise to $4.15, what will you have to do?