1. A farmer short crude palm oil futures (FCPO) contract for 150 tons at RM6,700 per ton. The exchange requires him to post RM60,000 as initial margin. If the maintenance margin is RM55,200, what price change (per ton) would triggered to a margin call?

a. RM25 price per metric ton increases.

b. RM32 price per metric ton increases.

c. RM50 price per metric ton increases.

d. RM75 price per metric ton increases.

2. At a futures exchange, contracts are not standardized with respect to:

a. Margin.

b. Quality and quantity.

c. Delivery time.

d. Location.

3. Internet Corporation's stock is currently traded at $5.12. The stock is expected to pay a dividend of 30 sen over the next 60 days. If risk-free rate is 4%, what should the correct price be for 60-day Internet Corporation Futures?

a. $5.17

b. $5.15

c. $5.10

d. $5.08