Logan Sold a Corn Futures Contract Using the Initial Margin

Multiple Choice

Logan sold a corn futures contract using the initial margin of $2,700.His maintenance margin is $2,000.The price of began to rise in early summer, but Logan wants to keep his contract.When his margin falls below $2,000 (minimum maintenance)

A) his contract will be automatically sold or canceled.
B) he does not need to do anything since the most he can lose is $2,700.
C) he will need to deposit at least $700 with his broker to bring his margin back up to the initial deposit.
D) he will need to deliver the corn immediately.