Question: Below is the contract specification for the live cattle futures traded on the Chicago Mercantile Exchange: Tom has just sold 10 April contracts at 92.475

Below is the contract specification for the live cattle futures traded on the Chicago Mercantile Exchange:

Tom has just sold 10 April contracts at 92.475 cents and has deposited $12,000 into its margin account. Assume that the 10 cattle future is the only position in his account.
At what futures price Tom's margin account will be credited with $5,000. (4 points)
At what futures price a margin call will be triggered against Tom's margin account. (4 points)

Minimum Fluctuation (tick size) 0.025 cent per ContQuoted Trading Name Initial Maintenance Units Unit Margin Margin US cents per pound 40,000 ive Cattle $1,080 s800 pounds

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