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Suppose the initial margin on heating oil futures is $20,300, the maintenance margin is $17,000 per contract, and you establish a long position of 17
Suppose the initial margin on heating oil futures is $20,300, the maintenance margin is $17,000 per contract, and you establish a long position of 17 contracts today, where each contract represents 28,000 gallons. Tomorrow, the contract settles down $.11 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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