A mining firm takes a short position in nickel futures to hedge the price of 60 tonnes of Nickel. Each futures contract is for 6 tonnes. The futures price when the contracts are taken out is $30,000 per tonne. The initial margin requirement is $300,000 per futures contract. The maintenance margin is $210,000 per contract. The settlement price of the nickel futures contract at the end of the first day of trading is $30,950. i) What would the settlement price have to be at the end of the second day of trading in order for a margin call of $1,000,000 to be made by the mining firm’s broker? (10 marks) ii) On the second day the mining firm increases its hedging position by taking an additional short position in nickel futures for 30 tonnes of nickel. The futures price at which the additional contracts were entered into was $31,500. The settlement price at the end of the second day of trading is $31,150. What is the balance of the mining firm’s margin account at the end of the first two days of trading?