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Your broker requires an initial margin of $6,075 per futures contract on wheat and a maintenance...

Your broker requires an initial margin of $6,075 per futures contract on wheat and a maintenance margin of $4,500 per contract. Wheat futures contracts are based on 5,000 bushels and quoted in cents per bushel. You sold one wheat futures contract yesterday at the closing settlement price quote of 786. Today, the settlement quote is 808. Will you receive a margin call and if so, for what amount? All margin calls restore the margin level to its initial level. If the settlement price was 816, would your answer(s) change? If so, how?

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Answer #1
Initial Margin 6075
Maintainance Margin 4500
Wheat Future Contracts Size 5000.00
Price change (5000*(7.86-8.08)) -1100
Current Margin (Initial Margin + Price Change) 4975
We will not receive any margin Call as the margin balance exceeds the maintenance margin requirement.
When settlement Price is 816 cents
Price change (5000*(7.86-8.16)) -1500
Current Margin (Initial Margin + Price Change) 4575
We will not receive any margin Call as the margin balance exceeds the maintenance margin requirement.
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