QUESTIONS 91 THROUGH 96 RELATE TO DERIVATIVE INVESTMENTS.

91. An investor takes a short position of 10 futures contracts at $90 on Day 0. The

initial margin is $10 per contract. The maintenance margin is $5 per contract. On

Day 1, the futures settlement price is $96 and on Day 2, the futures settlement

price is $92. At the end of Day 2, the cash ending balance in the margin account

is closest to:

A. $80.

B. $120.

C. $140.