Answer the following questions for Hw1-Exhibit2 (Corn) (25 points) use March 2020 quotations

Assume that you short one corn future and you only deposit money equal to the initial margin (assume initial margin is 10% greater than the maintenance margin) what is your account balance for the following days: (please mention if any deposits were made and how much)

1. Day 0 (today) 2. Day 1 closing futures price declined by 5% 3. Day 2 closing futures price declined by 2.5% 4. Day 3 closing futures price increased by 5% 5. Day 4 closing futures price declined by 5%

uuespon Contract Unit 5,000 bushels U.S. cents per bushel Price Quotation Trading Hours Sunday - Friday, 7:00 p.m. 7:45 a.m. CT and Monday - Friday, 8:30 a.m. 1:20 p.m. CT TAS: Sunday - Friday 7:00 p.m. - 7:45 a.m. and ?Monday - Friday 8:30 a.m. - 1.15 p.m. CT 1/4 of one cent (0.0025) per bushel = $12.50 Minimum Price Fluctuation TAS: Zero or +/- 4 ticks in the minimum tick increment of the outright Product Code CME Globex ZC CME ClearPort: C Clearing: C TAS: ZCT change . Asset Class Product Code Maint, Vol. Maintenance Maint. Vol. Scan Exchange Asset Class Start Period Product nd Period End Period 03/2020 Maintenance 1,000 USD CBT AGRICULTURE CORN FUTURES 03/2020 33.000% Options Prior Settle Month Last Charts Hi / Low Limit Change Open High Low Volume Updated MAR 2020 OPT 384'4 UNCH 384'4 3840 3854 3822 117,017 409'4/3594 15:58:22 CT 08 Jan 2020