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Suppose the initial margin on heating oil futures is $ 9 , 5 0 0 , the maintenance margin is $ 8 , 2 0
Suppose the initial margin on heating oil futures is $ the maintenance margin is $ per contract, and you establish, and you establish a long position of contracts today, where each contract represents gallons. Tomorrow, the contract settles down $ from the previous day's price.
a Are you subject to a margin call? pts
b What is the maximum price decline that you can sustain on the contract without getting a margin call?
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