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Suppose the initial margin on heating oil futures is $ 2 0 , 2 0 0 , the maintenance margin is $ 1 6 ,
Suppose the initial margin on heating oil futures is $ the maintenance margin is $ per contract, and you establish a long position of contracts today, where each contract represents gallons. Tomorrow, the contract settles down $ from the previous days price. What is the maximum price decline on the contract that you can sustain without getting a margin call?
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