1.) Assume that you manage a copper mine and wish to hedge the copper price risk. You typically sell 100,000 pounds of copper per month on the spot market at the prevailing price. Suppose that the current price of September 2020 copper futures is $3.0895/pound. One contract is for 25,000 pounds. What position (short/long and the number of contracts) should you take to hedge your September copper sales?

2.) Follow the question above, if one future contract has a maintenance margin equal to its initial margin of $3,100 how much money you need to put down if you enter the hedge position calculated in the question above?

3.) Follow the question above, If the price of copper increases by 1%, what is the payments required by margin calls.