Suppose the initial margin on heating oil futures is ($1,000,) the maintenance margin is ($750) per contract,
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Suppose the initial margin on heating oil futures is \($1,000,\) the maintenance margin is \($750\) per contract, and you establish a long position of five contracts today (see Figure 16.1 for contract specifications). Tomorrow, the contract settles down .01, from .36 to .35. Are you subject to a margin call? What is the maximum price decline on the contract that you can sustain without getting a margin call?
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