Question
2. A trader takes a long position on one December crude oil futures contract (contract size = 1,000 barrels) at $60/barrel. The initial margin requirement
2. A trader takes a long position on one December crude oil futures contract (contract size = 1,000 barrels) at $60/barrel. The initial margin requirement is $12,000 and the maintenance margin is $8,000. What price change will lead to a margin call? Please explain.
3. A trader takes a short position on one December crude oil futures contract (contract size = 1,000 barrels) at $60/barrel. The initial margin requirement is $12,000 and the maintenance margin is $6,000. What price change will lead to a margin call? Please explain.
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The Handbook Of Equity Derivatives
Authors: Jack Clark Francis, William W. Toy, J. Gregg Whittaker
1st Edition
0471326038, 978-0471326038
