1. You sell two December futures contracts when the futures price is $1,200 per unit. Each contract is on 100 units and the inital margin per contract that you provide is $3,500. The maintenance margin per contract is $1,500. During the next day, the futures price rises to $1,222 per unit.

• What is the balance of your margin account (before the margin call, if there is any) at the end of the day?
• Does the account balance require a margin call?
• If so, how much additional money do you have to provide by the end of next day?

1. $2,600 ; yes ; $4,400
2. $5,700 ; no
3. $1,300 ; yes ; $2,200
4. $11,400; no