An investor enters into a futures contract to buy white maize for R2 900 per tonne. The contract is for delivery of 1 000 tonnes. The initial margin is R 550 000 and the maintenance margin is R250 000. You receive a margin call as R300 000 was lost from the margin account.

Please answer the blanks

a)If the price of white maize (increases/decreases) .............the investor will receive a margin call.

b)The price of white maize will have to change by R..........per tonne in order for the investor to receive a margin call.

c)The investor will receive the margin call if the new price of white maize is R..........per tonne

d)If the margin call is not met by the investor the broker will............the position.