Suppose that you enter into a short futures contract to sell July silver for $$27\mathrm{.}20$ per ounce. The size of the contract is $5,000$ ounces. The initial margin is $$4,000,$ and the maintenance margin is $$3,000.$ What change in the futures price will lead to a margin call? What happens if you do not meet the margin call?

Question $33$ options:

The price of silver must drop to $$27\mathrm{.}00$ per ounce for there to be a margin call. If the margin call is not met, your broker closes out your position.

The price of silver must rise to $$27\mathrm{.}40$ per ounce for there to be a margin call. If the margin call is not met, your broker closes out your position.

The price of silver must rise to $$27\mathrm{.}40$ per ounce for there to be a margin call. If the margin call is not met, the position remains open until the margin declines to $$0\mathrm{.}0.$

The price of silver must drop to $$26\mathrm{.}20$ per ounce for there to be a margin call. If the margin call is not met, your broker closes out your position.