Suppose the initial margin on heating oil futures is 20000, Ask an Expert

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Suppose the initial margin on heating oil futures is $20,000, the maintenance margin is $19,000 per contract, and you establish a long position of 14 contracts today, where each contract represents 25,000 gallons. Tomorrow, the contract settles down $.06 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 ? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 3 decimal places.)

Margin call cents per gallon

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92408468

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