Question
3. A company buys two December futures contracts on crude oil. Each contract is for the delivery of 1,000 barrels. The current futures price is
3. A company buys two December futures contracts on crude oil. Each contract is for the delivery of 1,000 barrels. The current futures price is $66, the initial margin is $4,000 per contract, and the maintenance margin is $3,000 per contract. What price change would lead to a margin call? Under what circumstances could $500 be withdrawn from the margin account?
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Introduction To Mathematical Finance Discrete Time Models
Authors: Stanley R. Pliska
1st Edition
1557869456, 9781557869456
