Question: Suppose the initial margin on heating oil futures is $ 1 4 , 0 0 0 , the maintenance margin is $ 1 2 ,
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? Round your answer to decimal places.
Margin call
cents per gallon
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