Question
Suppose that you enter into a long futures contract to buy oil for $35 per barrel. The size of the contract is 200 barrels. The
Suppose that you enter into a long futures contract to buy oil for $35 per barrel. The size of the contract is 200 barrels. The initial margin is $2,100 and the maintenance margin is $1,500. If the oil price ends in two scenarios, $30 and $39, respectively. Would it lead to a margin call? If it does, how much should you deposit?
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
7th Edition
013213683X, 978-0132136839
