2.28. A company enters into a short futures contract to sell
5,000 bushels of wheat for 450 cents per bushel. The initial
margin is $3,000 and the maintenance margin is $2,000. What
price change would lead to a margin call? Under what
circumstances could $1,500 be withdrawn from the margin
account?
2.29. Suppose that there are no storage costs for crude oil
and the interest rate for borrowing or lending is 5% per annum.
How could you make money if the June and December futures
contracts for a particular year trade at $60 and $66,
respectively.