Question $1$

Michael Devito

Suppose that on $01-$Feb$-2024,$ a financial manager takes a long position in $500$ Oil Future contracts that expire in June$-2024$ at a future price of $$92\mathrm{.}00$ per barrel. Each Oil Future contract calls for the delivery of $1,000$ barrels. The initial Margin and Maintenance margins are $12\%$ and $5\%$ of the initial face value of the contract, respectively, based on the number of contracts, the number of underlying assets per contract, and the future price on the settlement date $(5001,000$$$92\mathrm{.}00).$ A contract $=1,000$ ba rrels

The manager holds the contract for $10$ business days and needs to calculate their margin account balance for each day based on the provided daily prices for the respective Oil Future contract per barrel. Additionally, determine whether a Margin Call has occurred and, if so$,$ calculate the value that the manager needs to deposit.

$\backslash$table$[[$Initial Margin,$5,520,000,12\%1,00092$