Question: Question A speculator enters into a short position in five October cotton futures contracts at $0.826 per pound. The contract size is 50,000 pounds. The

Question A speculator enters into a short position in five October

Question A speculator enters into a short position in five October cotton futures contracts at $0.826 per pound. The contract size is 50,000 pounds. The initial margin is $2,527 per contract, and the maintenance margin is $2,250 per contract. Calculate the futures price F such that, if the futures price rises above F, then the trader receives a margin call (Heads up: I am asking you for a price per pound.) Enter your answer in dollars and cents, to four decimal places. Do not type dollar signs. For example, type a price of $4.1234 as 4.1234

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