Suppose that on March 1 you take a long position in a June crude oil futures contract at $20/barrel (contract size 1,000 barrels) a. How much cash or risk-free securities would you have to deposit to satisfy an initial margin requirement of 5%? b. Calculate the values of your equity account on the following days, given the following settlement prices: 3/2 $20.50 3/3 $20.75 3/4 S20.25 3/5 $19.50 3/8 S19.00 c. If the maintenance margin requirement specifies keeping the value of the equity account equal to 75% of the initial margin requirement each day, how much cash would you need to deposit in your commodity account each day? A security is currently trading at $97. It will pay a coupon of S5 in two months. No other payouts are expected in the next six months. (a) If the interest rate is 12%, what should be the forward price on the security for delivery in six months? (b) If the actual forward price is $92, explain how an arbitrage may be created