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  3. (1 pt) at time t0, mr. h signs a futures contract

(1 pt) At time t0, Mr. H signs a futures contract to purchase one unit...

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(1 pt) At time t0, Mr. H signs a futures contract to purchase one unit (5000 bushels) of corn for delivery on Mar. 31 at Fo dollars per bushel. Also at time t0, Mr. H deposits 1600 dollars in his margin account. At the t-0 price, the cost Mr. H of the corn would be dollars (write FO for Fo) At time t1, the futures price to purchase one unit of com for delivery on Mar. 31 changes to Fidollars per bushel. At the t-1 price, the cost of purchasing one unit of corn would be dollars (write F1 for F1) The profit (loss if negative) of purchasing one unit of corn at Fo inste ad of purchasing at F1 is dollars (write F1 for F1, FO for Fo) After the "mark to market" at t-1, Mr. H's contract price At time t-2, the futures price to purchase one unit of corn for delivery on Mar. 31 changes to F2 dollars per bushel. At the t-2 price, the cost of purchasing one unit of corn would be dollars/bu, margin account dollars dollars (write F2 for F2) The profit (loss if negative) of purchasing one unit of corn at F1 instead of purchasing at F2is dollars (write F2 for F2, F1 for Fi) After the "mark to market" at t-2, Mr. H's contract price- write F2 for F2, FO for Fo, simplify your answer before entering) dollars/bu, margin account dollars

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