Question: Suppose the initial margin on heating oil futures is $ 1 4 , 1 0 0 , the maintenance margin is $ 1 3 ,
Suppose the initial margin on heating oil futures is $
the maintenance margin is $ per contract, and you establish a
long position of contracts today, where each contract represents
gallons. Tomorrow, the contract settles down $ from the
previous days 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 decimal
places.
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