Question: Please follow the example to solve the question Example: W Suppose the initial margin on heating oil futuraa to $8.400. the maintenance margin is $7,200

 Please follow the example to solve the question Example: W Suppose

Please follow the example to solve the question

Example:

the initial margin on heating oil futuraa to $8.400. the maintenance margin

W Suppose the initial margin on heating oil futuraa to $8.400. the maintenance margin is $7,200 per oontraot. and you establish a long position of 10 wntraota today. where each contract rampant: 42,000 gallons. Tom. tho oontraot aattlaa down 5.04 from the pravhua day's poop. Are you aub}oct to a margin call? What la the maximum prioo decline on the oontrad that you can sustain without getting a margin all? Ifthcmntaotaetosdomalmposimiommoncy. Thcloaaperoontraot is: 42.000 3' SIM-$1.630 Whonthcaoootmtiamorkod- to- MotondaettloduthccndofthetndingdayJour balancepaoonhactiJmBAO-SLGBDJ whichisleasthnnthenuinmemargin, aorouwillrooeivoamarginoall. MarginCall-BOperoonu-aotorforpoaionUOxa) Thcmiuiuuunpriooohangefotamunoallia: SIM-42,\"!!! X 41,200; 42,000- .0235? X - 3.02857 1- 2.857 cont: per gallon

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