In–Class Exercise Suppose you wish to purchase 30 May corn futures contracts. The current price of the May contract is $3.70/bushel (see earlier slide.

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In–Class Exercise Suppose you wish to purchase 30 May corn futures contracts. The current price of the May contract is $3.70/bushel (see earlier slide for contract size). You wish to withdraw all gains that exceed $1000 over your initial margin. Complete the following mark-to-market schedule assuming a 75% maintenance margin of the 5% initial margin: Day Futures Price Daily Gain/Loss Cumulative Gain/Loss Margin Account Balance Maintenance Call Made? (at $______) If so, how much needs to be deposited? Initial $3.70 N/A Feb 16 $3.68 Feb 17 $3.75 Feb 18 $3.71 Feb 19 $3.63 Feb 20 $3.69