Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investor has just entered 3 short oil futures contracts at a futures price of $46 per barrel. The size of each contract is 1,000

image text in transcribed

An investor has just entered 3 short oil futures contracts at a futures price of $46 per barrel. The size of each contract is 1,000 barrels. The initial margin is $6,750 and the maintenance margin is $4,500 per contract. A week after opening the position the futures price rises to $49 per barrel. What is the balance of the margin account at the end of the week? (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

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions