NYMEXs Light Sweet Crude Oil futures contract specifies the delivery of 1,000 barrels of West Texas Intermediate
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Question:
NYMEX’s Light Sweet Crude Oil futures contract specifies the delivery of 1,000 barrels of West Texas Intermediate (WTI) Crude Oil when the contract finally settles. A broker requires that its clients post an initial overnight margin of $7,763 per contract and an overnight maintenance margin of $5,750 per contract. A client buys ten contracts (long position) at $75 per barrel through this broker. On the next day, the contract settles for $72 per barrel. How much will the client have to provide to his broker?
Related Book For
Principles of Cost Accounting
ISBN: 978-1305087408
17th edition
Authors: Edward J. Vanderbeck, Maria Mitchell
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