Suppose that on March 1 you take a long position in a June crude oil futures contract at $20/barrel (contract size=1,000 barrels)

a. How much cash or risk-free securities would you have to deposit to satisfy an initial margin requirement of 5%?

b. Calculate the values of your equity account on the following days, given the following settlement prices:

3/2$20.50

3/3$20.75

3/4$20.25

3/5$19.50

3/8$19.00

c. If the maintenance margin requirement specifies keeping the value of the equity account equal to 75% of the initial margin requirement each day, how much cash would you need to deposit in your commodity account each day?