(A) What are the main differences between Futures and Forward Contracts contracts that would lead you to choose one over the other? Give examples in either scenario.

(B) Suppose that you enter into two short Futures contract to sell a commodity for $100 in 3 months. The size of the contract is 500 units of the commodity. You transferred the total required initial margin of $5000 to your broker. The maintenance margin for each of these contracts is $1500.

(i) What is the change in the Futures price that will trigger a margin call? Assume these are the only contracts you own and that your margin account hold only the required initial margin. What happens if you do not meet the margin call?

(ii) What is the minimum change in the Futures price so you can withdraw $1000 from your margin account?