Suppose on March 1 you take a long position in a June crude oil futures contract at \(\$ 50 /\) barrel (contract size = 1,000 barrels).

a. How much cash or risk-free securities would you have to deposit to satisfy an initial margin requirement of \(5 \%\) ?

b. Calculate the values of your commodity account on the following days, given the following settlement prices:

c. If the maintenance margin requirement specifies keeping the value of the commodity account equal to \(100 \%\) of the initial margin requirement each day, how much cash would you need to deposit in your commodity account each day?

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3/2 $50.50 3/3 50.75