(2) A trader buys one July futures contract on orange juice. Each contract is for the delivery of 15000 pounds. The current futures price is 160 cents per pound, the initial margin is $6000 and the maintenance margin is $4500. What price change would lead to a margin call? Under what circumstances could $1000 be withdrawn from the margin account? (3) A investor holds 50000 shares of a certain stock. The market price is $30 per share. The investor is interested in hedging against the movements in the market over the next month and decides to use the September Mini S&P 500 futures contract. The index futures price is currently 1500, and each contract is for delivery of $50 times the index. The beta of the stock is 1.3. What is the hedge that minimizes risk? What should the company do if it wants to reduce the beta of the portfolio to 0.5