Are you subject to a margin call what is the maximum price


Suppose 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 today, where each contract represents 42,000 gallons. Tomorrow, the contract settles down $.04 from the previous day’s price. Are you subject to a margin call? What is the maximum price decline on the contract that you can sustain without getting a margin call?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Are you subject to a margin call what is the maximum price
Reference No:- TGS02731123

Expected delivery within 24 Hours