Question: Suppose the initial margin requirement for the oil contract is 20%. Contract size is 1000 barrels. Current future price for march is $62.48. If the

Suppose the initial margin requirement for the oil contract is 20%. Contract size is 1000 barrels. Current future price for march is $62.48. If the spot oil price at maturity date is 65.48, and you only invest on oil commodity and dont use future contract, whats your return if you buy the oil?

A.

$31.25

B.

$32.37

C.

$38.47

D.

$41.32

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