3. A trader buys two July futures contracts on wheat. Each contract is for the delivery of 5,000 bushels. The current futures price is 270 cents per bushel, the initial margin is $5,000 per contract, and the maintenance margin is $3,500 per contract. What price change would lead to a margin call? How can a trader withdraw at least $1,000 from the margin account (under which conditions)? Explain what is meant by a perfect hedge. Does a perfect hedge always lead to a better outcome than an imperfect hedge? Explain your answer. Give three reasons why the treasurer of a company might choose not to hedge the company's exposure to a particular risk at all. 4