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Suppose that on September $5,2021,$ a company takes a long position in four December $2021$ crude oil futures contracts.

One contract is for the delivery of $1000$ barrels of crude oil. The initial margin for each contract is $$4,000$ and the

maintenance margin is $$2,500.$ The futures price is $$46\mathrm{.}35$ per barrel when the company enters into the co Time left $1$:$46$:$06$

a$.$ At the end of the first day, the settlement price at the end of the day is $$46\mathrm{.}25$ per barrel:

i$).$ Calculate the balance of the margin account.

Answer:

ii$)$ A margin call

b$.$ If the company receives a margin call at the end of the second day to deposit a variation margin of $$6682,$ what is

the settlement price at the end of the second day?

Answer: