A T-note futures contract has a face value of $100,000, currently it is priced at 108’18. The initial margin is 1,620, and maintenance margin is $1,200. Jack longs one T-note futures contract and...

A T-note futures contract has a face value of $100,000, currently it is priced at 108’18. The initial margin is 1,620, and maintenance margin is $1,200. Jack longs one T-note futures contract  and Kathy shorts one T-note futures contract. Three months later, the T-note futures contract price increase to 109’14. Who will get a margin call, by how much?

1. Jack will get a margin call, by $875


2. Jack will get a margin call, by $455


3. Kathy will get a margin call, by $875


4. Kathy will get a margin call, by $455