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a) You just heard a news story that all fracking operations are being ordered to cease and all cars are expected to run on 50%

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a) You just heard a news story that all fracking operations are being ordered to cease and all cars are expected to run on 50% ethanol within the next few years. You believe this will have a dramatic increase on corn futures. You check online and corn futures one year from now are quoted at 401'4. The contract size is 5,000 bushels. What is the market value of 3 contracts? (show your calculations). b) Margin requirements are 15%. How much capital must you put down to make this transaction? b) Margin requirements are 15%. How much capital must you put down to make this transaction? 1 " III QO

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