Question
Assume the current spot price of oil is $90/barrel and the future price is $90.64/barrel. You enter into 4 long future contracts today (2/20/17), each
Assume the current spot price of oil is $90/barrel and the future price is $90.64/barrel. You enter into 4 long future contracts today (2/20/17), each contract is for 100 barrels of oil. Your initial margin is $1,500 per contract and your margin call occurs at $1,000 per contract.
date | price |
2/20/2017 | 90.64 |
2/21/2017 | 93.55 |
2/22/2017 | 96.87 |
2/23/2017 | 92.99 |
2/24/2017 | 89.48 |
2/27/2017 | 85.22 |
2/28/2017 | 83.33 |
3/1/2017 | 85.52 |
What does your margin account have in it at the end of each day? If there is a margin call, note that there is a margin call and record that you deposit the necessary money into the account as a separate transaction instantaneously, i.e. if on 2/27 you needed to put in $1,500 at the end of the day you should show a deposit of $1,500 on 2/27 after the close of the day.
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