A company enters into long position in three futures contracts in wheat for 650 cents per bushel. Each contract is based on 5,000 bushels and quoted in cents per bushel. The initial margin is $5,000...

A company enters into long position in three futures contracts in wheat for 650 cents per bushel. Each contract is based on 5,000 bushels and quoted in cents per bushel. The initial margin is $5,000 and the maintenance margin is $3,000 per contract. The company will be allowed to withdraw any balance in the margin account in excess of the initial margin and the company will get a margin call if the balance is going below the maintenance margin. Please fill in the following blanks.

a.    There is a margin call if the futures price goes down by(sample answer: 20 cents) to the price of  per bushel (sample answer: 800 cents)?

b.    $1,500 will be withdrawn from the margin account if the price goes up by(sample answer: 20 cents) to the price of  per bushel (sample answer: 800 cents)?