a. The maintenance margin for a futures contract is 1000 and the initial margin is 1200. The current futures price is $30 per unit. Each contract controls 100 units. You go short one contract. At what futures price will you get a margin call. Explain your answer.

b. Interest rates are 5% per year continuously compounded. What interest rate compounded semiannually will give the same future value in one year as the continuously compounded investment. Show all intermediate calculations. ( Please record at least 4 decimal places)