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Suppose the initial margin on heating oil futures is $ 1 2 , 6 0 0 , the maintenance margin is $ 1 0 ,

Suppose the initial margin on heating oil futures is $12,600, the maintenance margin is $10,000 per contract, and you establish a long position of 19 contracts today, where each contract represents 37,000 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?

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