please provide a simplistic answer for each part and show calculations It is now October $2016.$ A company anticipates that it will purchase $1$ million pounds of copper in each of February $2017,$ August $2017,$ February $2018,$ and August $2018.$ The company has decided to use the futures contracts traded by the CME Group to hedge its risk. One contract is for the delivery of $25,000$ pounds of copper. The initial margin is $$2,000$ per contract and the maintenance margin is $$1,500$ per contract. The company's policy is to hedge $80\%$ of its exposure. Contracts with maturities up to $13$ months into the future are considered to have sufficient liquidity to meet the company's needs. Devise a hedging strategy for the company. $|$

Assume the market prices $($in cents per pound$)$ today and at future dates are as in the following table. What is the impact of the strategy you propose on the price the company pays for copper? What is the initial margin requirement in October $2016?$ Is the company subject to any margin calls?

$\backslash$table$[[$Date$,$Oct. $2016,$Feb. $2017,$Aug. $2017,$Feb. $2018,$Aug. $2018],[$Spot price,$372\mathrm{.}00,369\mathrm{.}00,365\mathrm{.}00,377\mathrm{.}00,388\mathrm{.}00],[$Mar$.2017$ futures price,$372\mathrm{.}30,369\mathrm{.}10,,,],[$Sept$.2017$ futures price,$372\mathrm{.}80,370\mathrm{.}20,364\mathrm{.}80,,],[$Mar$.2018$ futures price,,$370\mathrm{.}70,364\mathrm{.}30,376\mathrm{.}70,],[$Sept$.2018$ futures price,,,$364\mathrm{.}20,376\mathrm{.}50,388\mathrm{.}20]]$