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Suppose the initial margin on heating oil futures is $8,400, the maintenance margin is $7,200 per contract, and you establish a long position of 10
Suppose the initial margin on heating oil futures is $8,400, the maintenance margin is $7,200 per contract, and you establish a long position of 10 contracts today, where each contract represents 42,000 gallons. Tomorrow, the contract settles down $0.04 from the previous days price. What is the maximum price decline on the contract that you can sustain without getting a margin call? (Do not round intermediate calculations. Round your answer to 3 decimal places.)
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