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Suppose the initial margin on heating oil futures is $8,500, the maintenance margin is $7,000 per contract, and you establish a long position of
Suppose the initial margin on heating oil futures is $8,500, the maintenance margin is $7,000 per contract, and you establish a long position of 16 contracts today, where each contract represents 43,000 gallons. Tomorrow, the contract settles down $.08 from the previous day's price. What is the maximum price decline on the contract that you can sustain without getting a margin call? (A 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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