Answered step by step
Verified Expert Solution
Question
1 Approved Answer
An investor has just entered 3 short oil futures contracts at a futures price of $60 per barrel. The size of each contract is 1,000
An investor has just entered 3 short oil futures contracts at a futures price of $60 per barrel. The size of each contract is 1,000 barrels. The initial margin is $6,500 per contract and the maintenance margin is $4,500 per contract. A month after opening the position the futures price rises to $64 per barrel. What is the balance of the margin account at the end of the month? (Assume that no margin call has occurred over this period and your answer should be to the nearest dollar, without the dollar sign.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started