Billy just placed an order to take a SHORT position in 5 contracts of S&P 500 E-mini futures for 3750 with an expiration date in 2 months. The contract size is 50 times the index. For these particular futures contracts, the broker requires an initial margin of $4500 per contract with a maintenance margin of $3000 per contract. Billy chooses to invest only the required amount per contract.

a. If by the close of tomorrow, the settle price of the S&P 500 E-mini futures contract is 3700, what will be the new balance of Billys margin account?

b. At what futures price, would Billy expect a margin call?

****IN EXCEL