Problem 2 (10 pts.) An investor buys 3 silver contracts (long position) on the Chicago Board of Trade (CBOT) on July 8 for delivery in September that same year. The following information relates to the silver contract and silver price on the date of purchase. Current futures contract price: $26.45 per troy oz. Size of contract: 5000 oz. Initial margin requirement: 5% of initial contract value Maintenance margin: 3.5% of initial contract value Part A How much must the investor put down as initial margin (in dollars $) to take the position in the 3 silver contracts? Show all work, carrying all calculations out to four (4) decimal places. Highlight your answer in bold. (5 pts.) Part B By the end of trading on July 27 the price of silver has risen to $29.31. Based on this price move answer the following questions: 1. What will be the dollar balance in the investor's margin account at the end of the trading day on July 27? (Assume that the investor has neither added to nor withdrawn funds from the margin account since taking the initial position on July 8). Show all work, carrying all calculations out to four (4) decimal places. Highlight your answer in bold. (3 pts.) 2. Will the investor suffer a margin call on this date? Using a Maintenance Margin Formula calculation in support, briefly explain your answer. (2 pts.)