Suppose the initial margin on heating oil future is 8400, Ask an Expert

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Suppose the initial margin on heating oil future is $8400, the maintenance margin is $7200 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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Financial Management, Finance

Category:- Financial Management
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