The crude oil futures contract on the New York Mercantile Exchange covers 1,000 barrels of crude oil.

Question:

The crude oil futures contract on the New York Mercantile Exchange covers 1,000 barrels of crude oil. The contract is quoted in dollars and cents per barrel (e.g., $27.42), and the minimum price change is $0.01. The initial margin requirement is $3,375, and the maintenance margin requirement is $2,500. Suppose you bought a contract at $27.42, putting up the initial margin. At what price would you get a margin call?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: