You sell short one WTI crude oil contract for future delivery at $62.23 per barrel. The...
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You sell short one WTI crude oil contract for future delivery at $62.23 per barrel. The contract size is 1,000 barrels. The initial margin is $5,000 and the maintenance margin is $2,500. a. In what direction does the futures price has to move so your position loses money? b. What is the futures price per barrel below or above which you will receive a margin call? You sell short one WTI crude oil contract for future delivery at $62.23 per barrel. The contract size is 1,000 barrels. The initial margin is $5,000 and the maintenance margin is $2,500. a. In what direction does the futures price has to move so your position loses money? b. What is the futures price per barrel below or above which you will receive a margin call?
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a In order for your short position to lose money the futures price needs to move in the opposite ... View the full answer
Related Book For
Accounting for Decision Making and Control
ISBN: 978-1259564550
9th edition
Authors: Jerold Zimmerman
Posted Date:
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