12. Assuming that Alfred withdraws the entire excess margin from his account at

the end of Day 3, the balance in his account at the end of Day 4 is closest to:

A. $115,000

B. $75,000

C. $95,000

Use the following information to answer the questions 20-24:

An investor takes a long position in 10 July Oil futures contracts at a price of $85

per barrel. Each contract is for 1,000 barrels of oil. The required initial margin is

$800 per contract and the maintenance margin is $600 per contract.

July Oil futures decline to $84.5 on Day-1, rise to $84.7 on Day-2 and decline to

$84.3 on Day-3.

20. What is the balance in the investors account at the end of the first day?

A. $3,000

B. $13,000

C. $5,000

21. What amount is the investor required to deposit at the start of the second day?

A. $3,000

B. $8,000

C. $5,000

22. What is the balance in the investors account at the end of the second day?

A. $11,000

B. $10,000

C. $5,000

23. How much can the investor withdraw at the end of the second day?

A. $10,000

B. $2,000

C. $4,000

24. Suppose that the investor withdraws half of what he is entitled to withdraw

from his account on the second

day, how much is the balance in his account at the end of the third day?

A. $5,000

B. $7,000

C. $14,000