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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 $9,500, the maintenance margin is $8,200 per contract, and you establish, and you establish a long position of 20 contracts today, where each contract represents 42,000 gallons. Tomorrow, the contract settles down $0.08 from the previous day's price.
a. Are you subject to a margin call? 2 pts.
b. What is the maximum price decline that you can sustain on the contract without getting a margin call? 2pts
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