Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You have entered a long position in an oil futures contract. The contract size is 1,000 barrels for each contract. The initial margin required is
You have entered a long position in an oil futures contract. The contract size is 1,000 barrels for each contract. The initial margin required is $22,000 per contract. The maintenance margin is $18,000. The contract is entered at market close on January 7 at a price of $67/barrel. The oil futures price is $64/barrel on Jan. 8, $62/barrel on Jan. 9, and $69/barrel on Jan. 10. What is the final balance in the margin account? Date Futures price Daily gain/loss Margin account Margin call balance Jan 7 167 Jan 8 64 Jan 9 62 Jan 10 69 Numeric Response
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started