An individual takes a short position of 3 contracts in soybeans when the price of soybeans is $5.50. He deposits a $.35 margin per bu. His total investment is $5,250 on 3 contracts. The price of soybeans declines by 2%. This represents a profit on his investment of

A. 7%

B. 31%

C. 35%

D. 45%

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Futures margin varies as a function of the individual's objective. Because of this, certain clients have a lower initial and maintenance margin level than others. The following clients all have this preferential margin requirement, with the exception of

A. hedgers

B. spreaders

C. speculators

D. both B and C