An investor holds a short position in four July crude palm oil futures contracts. When the contract was entered into on day zero, the futures price was RM 2200 per metric tonne. The initial margin is...

Extracted text: An investor holds a short position in four July crude palm oil futures contracts. When the contract was entered into on day zero, the futures price was RM 2200 per metric tonne. The initial margin is RM 2750 per contract, and the maintenance margin is RM 1500 per contract. The following table gives information on the price of CPO for July delivery over a 3-day period. Day 1 Closing futures Price (RM) 2150 2300 3 2350 Assess what will the variation margin be on the first day a margin call is received? A. RM 11,000 B. RM 10,000 C. RM 5,000