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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