!

Calvin has a long position in oil futures for 100,000 barrels. Klein has a short position in

oil futures for 100,000 barrels. Yesterdays closing futures price for oil was $60 per

barrel. If todays closing price is $58 per barrel, what is the marking to

market for Calvin

and Klein? The initial margin requirement was 10% and the maintenance margin

requirement is 5%.

a.

!

Calvin: $2; Klein:

-

$2

b.

!

Calvin: $20,000; Klein:

-

$20,000

c.

!

Calvin:

-

$20,000; Klein: $20,000

d.

!

Calvin: $200,000; Klein:

-

$200,000

e.

!

Calvin:

-

$200,000

; Klein: $200,00