Question
Suppose the initial margin on heating oil futures is $20,400, the maintenance margin is $18,000 per contract, and you establish a long position of 10
Suppose the initial margin on heating oil futures is $20,400, the maintenance margin is $18,000 per contract, and you establish a long position of 10 contracts today, where each contract represents 29,000 gallons. Tomorrow, the contract settles down $.04 from the previous days price. Are you subject to a margin call? What is the maximum price decline on the contract that you can sustain without getting a margin call? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 3 decimal places.) |
Margin call | cents per gallon |
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