Consider an investor who contacts his/her broker on June 5^th to enter into short position on 3 December soybean futures contract.

Each contract size is 50lbs. Initial margin requirement is $5000 per contract and maintenance margin requirement is $3750 per contract. Suppose that current futures price is $1250 per pound.

Using the daily settlement process, please answer

date	futures price			loss/gain			Acct bal. (after adjusting margin call)	Margin call
5-Jun	$1,250	/lbs
	$1,240	/lbs
6-Jun	$1,235	/lbs
7-Jun	$1,215	/lbs
8-Jun	$1,245	/lbs
				total cum.loss/gain=

#1. Are there any margin calls? If so, when and by how much?

#2. How much is the total cumulative loss/gain for this account?

#3. What is the appropriate account balance at the end of June 6th, which is the highlighted part in the table above?

		#1. no, there are no margin calls.
		#1. yes, there is a margin call on June 7th, by $2250
		#1. yes, there is a margin call on June 5th, by $4500
		#2. total cumulative gain = + $750
		#2. total cumulative loss = -$750
		#2. total cumulative gain = +1500
		#2. total cumulative loss = -$1500
		#3. June 6th account balance = $17,250
		#3. June 6th account balance = $15,750
		#3. June 6th account balance = $20,250