The crude oil futures contract on the new york mercantile


The crude oil futures contract on the New York Mercantile Exchange covers 1,000 barrels of crude oil. The contract is quoted in dollars and cents per barrel (e.g., $27.42), and the mininum price change is $0.01. The initial margin requirement is $3,375, and hte maintenance margin is requirement is $2,500. Suppose you bought a contract at $27.42, putting up the initial margin. At what price would you get a margin call?

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Financial Management: The crude oil futures contract on the new york mercantile
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