Question: You are in a situation where the initial margin on heating oil futures is $8,400, the maintenance margin is $7,200 per contract, and you establish

You are in a situation where the initial margin on heating oil futures is $8,400, the maintenance margin is $7,200 per contract, and you establish a long position of 10 contracts on this day. Each contract covers 42,000 gallons. If the contract settles down $.04 from yesterdays close, are you going to get a margin call? What is the maximum price decline that can be sustained before a margin call is issued?

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