The futures price of corn is $3.50 a bushel. Futures contracts for corn are based on 8,000 bushels, and the margin requirement is $2,000 a contract. You expect the price of corn to fall and sell the contract short.

1. What is the value of the contract and how much must you initially remit? Round your answers to the nearest dollar.

   Value of the contract: $

   Remit amount: $

2. If the futures price of corn rises to $3.64, what is the profit or loss on your position? Round your answer to the nearest dollar. Enter your answer as a positive value.

   The -Select-profitlossItem 3 is $ .

3. If the futures price of corn declines to $3.35, what is the profit or loss on your position? Round your answer to the nearest dollar. Enter your answer as a positive value.

   The -Select-profitlossItem 5 is $ .

4. If the futures price declines to $3.24, what may you do? Round your answer to the nearest dollar.

   The investor may remove up to $ from the account.

5. How do you close your position?

   The investor closes the position by entering a contract to -Select-buysellItem 8 the commodity.