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An investor buys a crude oil WTI future contract at a price of $42.64 per barrel. The crude oil contract is for 1,000 barrels. That
An investor buys a crude oil WTI future contract at a price of $42.64 per barrel. The crude oil contract is for 1,000 barrels. That day the contract settles at 43.90 and the following three days settlements are 42.60, 41.50 and 42.10. The contract initial margin is $3,300 and the maintenance margin is $2,800; Calculate and show the marking to market cash flows and remaining margin at the end of each day. Calculate the investor profit.
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