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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 $20,200, the maintenance margin is $16,500 per contract, and you establish a long position of 12 contracts today, where each contract represents 27,000 gallons. Tomorrow, the contract settles down $.07 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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