Question
An investment analyst notices prices for consumer goods, including gasoline, seem to be rising sharply. The analysis decides to observe and study NYMEX's RBOB gasoline
An investment analyst notices prices for consumer goods, including gasoline, seem to be rising sharply. The analysis decides to observe and study NYMEX's RBOB gasoline futures contract.
Market: NYMEX's Gasoline (Symbol RBOB) contract is an efficient hedging contract and is very liquid.
- What is the current Initial margin on one NYMEX RBOB gasoline futures contract?
- Theoretically, how do exchange officials set initial and maintenance margin requirements? That is, what specific factors should exchange officials consider when setting or changing margin requirements?
- What is the current price of one gallon of gasoline derived from the front-month RBOB future contact? Assuming one can easily buy or sell gasoline futures, why is the pump price for gasoline so different from RBOB gasoline futures prices?
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Answer 1 The current initial margin on one NYMEX RBOB gasoline futures contract is the amount of mon...
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Financial Reporting and Analysis
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
6th edition
9780077632182, 78025672, 77632184, 978-0078025679
