QUESTION 14

Your company is set to deliver 50,000 pounds of copper to a major client next week. The CFO has decided to use 2 copper futures, each with 25,000 pounds attached, to mitigate price risk. At the time your CFO opened her position, copper futures were $3.10/pound. The initial and maintenance margins are $15,000 and $10,000, respectively. What would be your CFO's ending margin balance if copper futures contracts trade for $3.04/pound the day after she opened her position? Assume any deficits are eliminated to keep the position open. Do not use the dollar sign when entering your answer.