A company enters into a short futures contract to sell 10,000 bushels of wheat for 800 cents per bushel. The initial margin for the 10,000 bushels is $10,000 and the maintenance margin is $8,000. A - What price change would lead to a margin call? Meaning the price goes against her, she is SHORT. When does the price go against her if it goes up or down? How much can she lose before she falls below the maintenance margin.

B- Under what circumstances could $2,00 be withdrawn from the margin account? Meaning her hedge is making money and she has $2,000 in the account above the margin she needs.

C- an increase of more than 80 cents to >880 cents a contract B- a decrease in the price of more than 20 cents to < 780 per contract D - a decrease of 80 cents or more, to 720 cents a contract B- an increase in the price of 20 cents to 820 per contract E- an increase of more than 40 cents to >840 cents a contract B- a decrease in the price of more than 10 cents to < 790 per contract not relevant because the amounts are too small for a big company to worry about