Each of the questions are seperate. Please ansher them using pen and paper no excel.

The alaphetical choices on bottom on the bottom of each question are the options. Please show work, using pen and paper NOT EXCEL

1.A company enter into a shprt futures contract to sell 50,000 units of a commodity for 70 cents per unit. The intial margin is $4000 and the maintenenance margin is $3,000. What is the futures price per unit above that will be a margin call.

a) 78 cents

b)76 cents

c)74 cents

d)72 cents

2. on March 1st a commodity's spot price is $60 and it's August futures price is $59. On july 1st the spot price is $64 and on the August futures price is $63.50. Acompany entered into futures contracts on March 1 to hedge its purchase of the commodity on July 1st. it closed out its position on July 1st. What is the effective price (after tacking account of hedging) paid by the company.

a.59.50

b.60.50

c.61.50

d. 63.50

3. Which of the following situations describe a hedger with the exposure to basics risk.

i. A hedger seeking to hedge a position in a 5.5% coupon municipal bond with a 5.5% coupon us tresuary bond.

ii. A portfolio manager for a large-cap growth fund knows he will be receiving a significant cash investment From a client within the next month and wants to pre-invest the cash using stock index futures.

iii. A farmer has a large corn he is looking to sell before June 30. The farmer uses a June futures contract to lock in his sales price.

a) 1 only b) 2 and 3 c) 1 and 2 d) 1, 2 and 3