2. (10 points) Eric has just purchased a heating oil contract at $2.05 per gallon. The contract size is 21,000 gallons. Initial margin is $6,075; maintenance margin is $4,500. If the price of heating oil is $2.15 when the contract expires, what is Eric's holding period return?

Profit on oil= (2.15-2.05) *21,00=$2,100

= 2,100/6.075

= 34.57%