1. The futures price of corn is $ 2.00. The contracts are for 10,000 bushels, so a contract is worth $ 20,000. The margin requirement is $ 2,000 a contract, and the maintenance margin requirement is $ 1,200. A speculator expects the price of the corn to fall and enters into a contract to sell corn.

a) How much must the speculator initially remit?

b) If the futures price rises to $ 2.13, what must the speculator do?

c) If the futures price continues to rise to $ 2.14, how much does the speculator have in the account?

1. The futures price of gold is $ 1,750. Futures contracts are for 100 ounces of gold, and the margin requirement is $ 5,000 a contract. The maintenance margin requirement is $ 1,500. You expect the price of gold to rise and enter into a contract to buy gold.

a) How much must you initially remit?

b) If the futures price of gold rises to $ 1,755, what is the profit and percentage return on your position?

c) If the futures price of gold declines to $ 1,748, what is the loss and percentage re-turn on the position?

d) If the futures price falls to $ 1,738, what must you do?

e) If the futures price continues to decline to $ 1,710, how much do you have in your account?

f) How do you close your position?

1. The futures price of British pounds is $ 2.00. Futures contracts are for