Suppose the initial margin requirement for the oil contract is 20%. Contract size is 1000 barrels. Current future price for march is $62.48. If the spot oil price at maturity date is 65.48, and you only invest on oil commodity and don’t use future contract, what’s your return if you buy the oil? A. $31.25 B. $32.37 C. $38.47 D. $41.32

Answer rating: 100% (QA)

Profit per share 654862483 To... View the full answer