Question: 4. [5 points] Danny entered into five lumber contracts. Each lumber futures contract is for 110,000 board feet. The contract requires an initial margin of

4. [5 points] Danny entered into five lumber contracts. Each lumber futures contract is for 110,000 board feet. The contract requires an initial margin of $5,400 per contract and a maintenance margin of $4,950 per contract. Prices are in US dollars per 1,000 board feet. Complete the following chart and the questions below: Settle Price Day 1 Price 783.9 Day Gain Cumulative Gain Margin Balance Margin Call 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 771.9 783.9 775.7 777.2 745.0 716.5 700.6 668.8 703.0 718.9 689.5 665.9 649.5 672.2 684.2 663.0 a. What is the amount of the initial margin for Danny's entire position? b. What is the amount of the maintenance margin for Danny's entire position? h

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