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John has purchased a futures contract on natural gas at $2.15 per cubic meter. The contract size is 20,000 cubic meters. The initial margin is
John has purchased a futures contract on natural gas at $2.15 per cubic meter. The contract size is 20,000 cubic meters. The initial margin is $3,000 and the maintenance margin is $2,500. If the price of natural gas goes to $2.25, which one of the following statement is correct.
He has a profit of $2,000 and he will not receive a margin call | ||
He has a profit of $0.1 and he will not receive a margin call | ||
He has a loss of $0.1 and he will receive a margin call | ||
He has a loss of $2,000 and he will receive a margin call |
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