anwser question 2. please 1. A company enters into a short...
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anwser question 2. please
1. A company enters into a short futures contract to sell 5,000 bushels of wheat for 2500 per bushel. Wheat is quoted in cents. The initial margin is $2000 and the maintenance margin is $1000. A. What price change would lead to a margin call? 2PTS. Show all work B. Under what circumstances could $5000 be withdrawn from the margin account? 2PTS. Show all work. 2. The price of gold is currently $1,200 per ounce. Forward contracts are available to buy or sell gold at $1,400 per ounce for delivery in one year. An arbitrageur can borrow money at 5% per annum. What should the arbitrageur do? Assume that the cost of storing gold is zero and that gold provides no income. 2pts Show all work and explain

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