1. Indicate True or False and then explain.
(1) A broker cannot be a clearing house member.
(2) The delivery price is paid for entering into a futures contract.
(3) Only the long position of a futures contract may default.
2. A trader buys three June r oil futures contract. Each contract is for the delivery of 100 barrels. The current futures price is $90 per barrel, the initial margin is $4,000 per contract, and the maintenance margin is $2,500 per contract. What price change would lead to a margin call ?