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Suppose the initial margin on heating oil futures is $20,100, the maintenance margin is $15,000 per contract, and you establish a long position of 18
Suppose the initial margin on heating oil futures is $20,100, the maintenance margin is $15,000 per contract, and you establish a long position of 18 contracts today, where each contract represents 26,000 gallons. Tomorrow, the contract settles down $.10 from the previous days price. What is the maximum price decline on the contract that you can sustain without getting a margin call? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 3 decimal places)
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