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Suppose the initial margin requirement for the oil contract is 25%. Contract size is 1000 barrels. Current future price for march is $62.48. If the

Suppose the initial margin requirement for the oil contract is 25%. Contract size is 1000 barrels. Current future price for march is $62.48. If the spot oil price at maturity date is 65.48and whats the leverage ratio from using oil futures to the one you only invest on oil commodity and dont use future contract?

A.

2.0
B.

3.0
C.

4.0
D.

5.0

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