Question
Crude oil futures for January delivery trade at $57/bbl. A contract is 1000bbl and initial margin is $10,000/contract with $5000/contract maintenance margin You short 5
- Crude oil futures for January delivery trade at $57/bbl. A contract is 1000bbl and initial margin is $10,000/contract with $5000/contract maintenance margin
You short 5 contracts
If crude drops below what price will you get a margin call? 62
At a price of $62.50 what would your margin call be? $27500
If you close out the position at $50/bbl what is your profit? $35,000
The answers are there but I need help working out the problem in order to prepare for an exam.
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77861671, 978-0077861674
