NYMEXs Light Sweet Crude Oil futures contract specifies the delivery of 1,000 barrels of West Texas Intermediate
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NYMEX’s Light Sweet Crude Oil futures contract specifies the delivery of 1,000 barrels of West Texas Intermediate (WTI) Crude Oil when the contract finally settles. A broker requires that its clients post an initial overnight margin of \($7\),763 per contract and an overnight maintenance margin of \($5\),750 per contract. A client buys 10 contracts at \($75\) per barrel through this broker. On the next day, the contract settles for \($72\) per barrel. How much additional margin will the client have to provide to his broker?
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Related Book For
Investments Principles Of Portfolio And Equity Analysis
ISBN: 9780470915806
1st Edition
Authors: Michael McMillan, Jerald E. Pinto, Wendy L. Pirie, Gerhard Van De Venter, Lawrence E. Kochard
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