Problem 2. (Marking to market, 9) A company enters a short futures contract to sell 5000 bushels of wheat for 250 cents per bushel. The initial margin is $3000, and the maintenance margin is $2000. Show your calculation steps.

(a) What price change would lead to a margin call? (6)

(b) How much money should the company deposit in the margin account on the day it receives the margin call in part (a)? (3)