Question: Please solve correctly, the solutions I've gotten have all been incorrect, please help Suppose the initial margin on heating oil futures is $8,600, the maintenance
Please solve correctly, the solutions I've gotten have all been incorrect, please help
Suppose the initial margin on heating oil futures is $8,600, the maintenance margin is $5,000 per contract, and you establish a long position of 20 contracts today, where each contract represents 44,000 gallons. Tomorrow, the contract settles down $.01 from the previous day's price. What is the maximum price decline on the contract that you can sustain without getting a margin call? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 3 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
