Question: Suppose the initial margin requirement for the oil contract is 40%. Contract size is 1000 barrels. Current future price for March is $30. The spot

Suppose the initial margin requirement for the oil contract is 40%. Contract size is 1000 barrels. Current future price for March is $30. The spot oil price at maturity date is 36. If you only invest on oil commodity and dont use future contract, whats your return if you buy the oil? The leverage ratio from using oil futures is_________. A. 50%, 2.0 B. 20%, 3.0 C. 10%, 4.0 D. 20%, 2.5

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