Jennifer believes that Northern Wine stock is going to decline in value relative to the S&P 500, so she is short selling 1,000,000 shares at $22 a share and buying S&P 500 futures. Her initial margin requirement for equities is 70% and the maintenance margin is 50%. The S&P futures are currently trading at a price of 4500 with a market value of $22,500 per contract, an initial margin of $5000 per contract and a maintenance margin of $4200 per contract. Northern Wine is fairly liquid and grows steadily, so its stock has a relatively low beta of 1.2 vs the S&P 500. Even though she views this as a combined position, she must hold these positions in different accounts

What is the highest the stock price can go before she receives a margin call in her stock account? What is the value of her stock account if the stock price moves to that level? What price must the futures trade at before she receives a margin call in her futures account? How many futures contracts should she buy to exactly hedge the Wine stock? (round your answer down to the nearest whole contract) IF Northern Wine's stock climbs to $30 per share and if her net gain or loss is zero, what price are the futures trading? For the purpose of this last question, you can ignore any interest expense or income on the margin deposits. Round the futures price to the nearest integer price (e.g. 3950.2 becomes 3950.00)