You short one May futures contracts when the futures price is $1,010 per unit. Each contract is on 100 units and the initial margin per contract that you provide is $2,000. The maintenance margin per contract is $1,500. During the next day the futures price rises to $1,012 per unit. What is the balance of your margin account at the end of the day? A. $3,700 B. $3,300 C. $2,200 D. $1,800

On March 1, an assets spot price (S0) is $49.50 and its June futures price (F0) is $50.50. On May 1, the spot price is $53 (St) and the June futures price is $53.50 (Ft). You entered into long futures contracts on March 1 to hedge your purchase of the asset on May 1. Suppose that you closed out the long futures position on May 1. Then, what is the effective price that you paid with the long hedging? A. $49.50 B. $50.00 C. $50.50 D. $53.50

On March 1 the price of a commodity is $2,000 and the December futures price is $2,020. On November 1 (before maturity) the spot price is $1,980 and the December futures price is $1,990. A producer of the commodity entered into shorting a December futures contract on March 1 to hedge the sale of the commodity on November 1. It closed out its position on November 1. What is the effective price (after taking account of hedging) received by the company for the commodity? A. $1,984 B. $1,994 C. $2,000 D. $2,010