The initial margin (performance bond) for the oil futures contract is $6,500 and the maintenance margin...
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The initial margin (performance bond) for the oil futures contract is $6,500 and the maintenance margin is $6,000. Each contract represents 1,000 barrels of oil. If you go long one contract at a quoted price of $75, what price would the oil contract need to move to trigger a "margin call"? The initial margin (performance bond) for the oil futures contract is $6,500 and the maintenance margin is $6,000. Each contract represents 1,000 barrels of oil. If you go long one contract at a quoted price of $75, what price would the oil contract need to move to trigger a "margin call"?
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To determine the price at which a margin call would be triggered we need to calculate the maintenanc... View the full answer
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