At $11$ a$.$m$.$ on January $5$ th

$,$ a trader enters a short position in $5$ soybean futures

contracts. The soybean futures price at $11$ a$.$m$.$ is $$12\mathrm{.}08$ per bushel, the size of one contract is

$5,000$ bushels of soybeans, the initial margin is $$4,725$ per contract, and the maintenance margin

is $$2,700$ per contract. To satisfy the margin requirement, the trader uses silver which has a $15\%$

haircut. The price of silver at $11$ a$.$m$.$ is $$22\mathrm{.}68$ per ounce.

At the end of trading on January $5$ th $,$ the soybean futures settlement price is $$12\mathrm{.}26$ per bushel and

the price of silver is $$20\mathrm{.}41$ per ounce.

a$.$ How many ounces of silver must be deposited at $11$ a$.$m$.$ to satisfy the margin

requirement?

b$.$ What is the trader$$s mark to market at the end of trading on January $5$th $?$

c$.$ What is the trader$$s margin account balance at the end of trading on January $5$th $?$ To

answer this question: if your answer to part b is negative, assume the trader sells some of

the deposited silver to satisfy the cash outflow; if instead your answer to part b is

positive, assume the cash inflow is used to buy additional ounces of silver.