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You acquired 5 long futures contracts for oil. The standard contract size is 1,000 barrels. The agreed strike price is P110,000 per barrel to be

You acquired 5 long futures contracts for oil. The standard contract size is 1,000 barrels. The agreed strike price is P110,000 per barrel to be delivered one month from now. The current price of a barrel of oil is P108,000. The broker requires an initial margin of 8%. How much is the initial margin required?

Topic: Financial Risk Management (Type of Derivatives: Futures)

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