20. You have $6,500 of equity in your account, and you just shorted two E-mini Dow Jones Index futures which have Initial Margin of $2,250 each, and maintenance margin of $2,000 each. Each Dow point is a minimum tic worth $5. How much is your profit if the Dow rises 165 points? 21. Physical delivery against futures contracts almost never happens in practice. a. True b. False 22. Margin is a term used to describe a process that protects the investor against the risk of a credit default. a. True b. False 23. Physical traders use futures to hedge against the risk of adverse price movements while they are transporting commodities from the producer to the consumer. a. True b. False 24. The exchange acts as the counterparty for both buyer and seller so every futures trade generates two transactions, a long position for the buyer and a short position for the seller. a. True b. False 25. Farmers trade commodity futures with speculators on the CBOT to lock in harvest prices in advance. a. True b. False