Question: The table below lists the current price for a zinc futures contract with a delivery date of July 2023. The quoted price is in

The table below lists the current price for a zinc futures contract

The table below lists the current price for a zinc futures contract with a delivery date of July 2023. The quoted price is in dollars per metric ton of zine and each contract is for 25 metric tons of zinc. Assume that the initial margin requirement is 12% and the margin maintenance is 5%. Delivery Month July 2023 Last $2047.00 (a) Suppose that you believe that zinc prices are headed lower. Would you want to initiate a long position or a short position on zinc futures? No explanation is required. (b) Suppose you decide to trade 7 future contracts (consistent with the strategy from Part (a)). What is the amount that you must deposit into your margin account to open the futures position? (c) Suppose that the price of zinc rises to $2200. What will happen to your margin account? Will you receive a margin call? Explain your answer.

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