1.A trader buys one wheat contract (underlying = 5,000 bushels) at a price of $4.05 per bushel. The initial margin on the contract is $4,500 and the maintenance margin is $3,750. At what price will the trader receive a maintenance margin call?
  A.  $2.30
  B.  $2.90
  C.  $3.20
  D.  $3.90
  Answer: D
  The trader would have to post a margin of $4,500 at the outset and would receive a margin call if the value of this margin fell to $3,750. Assuming price will decline to , the trader receive a maintenance margin call, so