Question: 3. A trader enters a long position on 2 units of Brent Crude Oil futures contracts (1000 barrels per contract) on the opening of
3. A trader enters a long position on 2 units of Brent Crude Oil futures contracts (1000 barrels per contract) on the opening of 25/09/2022 when the futures price is $40 per barrel. The initial margin is 8%. The margin account earns interest of 1% compounded continuously. The maintenance margin is 65%. a. Calculate the profit and the margin account balance at the end of 27/09/2022 Date 25/09/2022 Futures Closed Price $39 26/09/2022 $37 27/09/2022 $40 b. Find the lowest value of futures price on 26/09/2022 that prevents the margin call.
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