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Recall that a Chicago Board of Trade (CBOT) corn futures contract is for 5,000 bushels. Also assume that the initial margin to trade a CBOT

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Recall that a Chicago Board of Trade (CBOT) corn futures contract is for 5,000 bushels. Also assume that the initial margin to trade a CBOT Corn futures contract is $2,000 and the Maintenance Margin requirement is $1500, per contract. Assume that Trader A bought 1 December 2018 CBOT corn futures contract on September 5, 2018 at $3.60 per bushel. Assume the Margin Account Balance at the end of the day on September 5 equals the Initial Margin requirement. Assume on Sep. 6, the Dec. 2018 CBOT Corn futures settlement price is $3.80 per bushel. Assume on Sep. 7, the Dec. 2018 CBOT Corn futures settlement price is $4.00 per bushel. Assume that on Sep. 10, Trader A offsets her previous purchase of Dec. 2018 corn by selling 1 Dec. 2018 corn futures contract at $4.10 per bushel. 1.Complete the diagram below for Trader A Change Margin in Contract Account Val Additional Additional Margin Futures ue-Rel. to Date Market 9/5 Balance Prev Day 9/6 9/10 91

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