Question
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
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?
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Price per gasoline080per gallon No of gallons in contract 42000 val...
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Options Futures and Other Derivatives
Authors: John C. Hull
10th edition
013447208X, 978-0134472089
