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Assume that today you enter a short futures position for ten (10) December 2020 Oil (WTI) futures contracts (you sell 10 December Oil Futures). The

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Assume that today you enter a short futures position for ten (10) December 2020 Oil (WTI) futures contracts (you sell 10 December Oil Futures). The initial futures price is $40 (the December '20 contract price at the time you sell the futures). The contract size is 1,000 barrels of oil per contract. Initial margin is 10% of Notional Value, or $4,000 per contract. Assume the December 2020 oil futures price rises to $42 tomorrow. After daily settlement tomorrow, what should be the percentage change in the cash in your margin account? 5% 50% -40% -5% -50% 40%

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