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Alfred takes the short position on 10 oil futures contract at a futures price of $75 per barrel. Each contract is on 1,000 barrels of
Alfred takes the short position on 10 oil futures contract at a futures price of $75 per barrel. Each contract is on 1,000 barrels of oil. Settlement prices on the next 4 days are given as follows: Day Price 1 $75.50 2 $79 3 $77 4 $75 The exchange enforces an initial margin requirement of 10% and a maintenance margin of 5%.
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