Question: Question #40 (12 points). Danny entered into a long position in Live Cattle. The maintenance margin is $1,600 per contract and the initial margin is

Question #40 (12 points). Danny entered into a long position in Live Cattle. The maintenance margin is $1,600 per contract and the initial margin is $1,760 per contract. Each contract is for 40,000 pounds. Prices below are US cents per pound. If Danny purchased 8 contracts: (a) what is the amount of his initial margin for his entire exposure/position? (b) what is the amount of his maintenance margin for his entire exposure/position? (c) complete the following table regarding his margin account balance for his entire exposure/position Be to appropriately label values in the respective columns/rows/cells. Day Trade Price Settle Price Daily Gain ($) Cum. Gain (5) Margin Balance ($) Margin Call ($) 1 118.250 2 118.825 3 118.350 4 116.225 5 116.350 6 117.250 7 116.650 8 114 225 9 114 475 10 116.550 11 117 200 12 117.475 13 116.950 14 116 425 15 117.175

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