Suppose that you enter into a long futures contract to buy May gasoline for $0.80 per gallon on the New York Commodity Exchange. The size of the contract is 42,000 gallons. The initial margin requirement is $2,000, and the maintenance margin is $1,500. What change in the futures price will lead to a margin call?

Answer rating: 100% (QA)

Price per gasoline080per gallon No of gallons in contract 42000 val... View the full answer