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A timber farmer has entered into two long futures contracts .pdf

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A timber farmer has entered into two long futures contracts to buy wood in August for $15.80 per tonne. The size of each contract is 1,000 tons. The initial margin is $3,000 and the maintenance margin is $2,000 per contract. Which of the following futures prices represents the smallest change that will allow withdrawing $2,000 from the margin account?.

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A timber farmer has entered into two long futures contracts to buy wood in August for $15.80 per tonne. The size of each contract is 1,000 tons. The initial margin is $3,000 and the maintenance margin is $2,000 per contract. Which of the following futures prices represents the smallest change that will allow withdrawing $2,000 from the margin account?

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