Suppose the initial margin on heating oil futures is $8,400, the maintenance margin is $7,200 per contract,
Question:
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 $.04 from the previous day's price. Are you subject to a margin call? What is the maximum price decline on the contract that you can sustain without getting a margin call?
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Given data Initial margin 8400 Maintenance margin ...View the full answer
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Mehwish Aziz
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Related Book For 
Fundamentals of Investments Valuation and Management
ISBN: 978-0078115660
7th edition
Authors: Bradford Jordan, Thomas Miller
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