Ryan McGuireSuppose that on 01-Feb-2024, a financial manager takes a long position in 200 Oil Future contracts that expire in June-2024 at a future price of$95.00 per barrel. Each Oil Future contract calls for the delivery of 1,000 barrels. The initial Margin and Maintenance margins are 12% and 5% ofthe initial face value of the contract, respectively, based on the number of contracts, the number of underlying assets per contract, and the futureprice on the settlement date (200 x 1,000 x $95.00).The manager holds the contract for 10 business days and needs to calculate their margin account balance for each day based on the provided dailyprices for the respective Oil Future contract per barrel. Additionally, determine whether a Margin Call has occurred and, if so, calculate the valuethat the manager needs to deposit.Initial MarginMaintenance MarginDayContract OpeningD+1D+2D+4D+5D+6D+7D+8D+9D+10Future Price/ perUnderlying Asset$$$$$$$$$$95.0094.0094.0093.0092.0091.0088.0088.5090.0092.00Change in Price-1.00Total Gain/Loss-1.00What is the profit or loss of the manager's future contract position in Oil?Margin Acc.BalanceMargin Call? Yesor NoAmount to bedeposited.

Initial Margin Requirement: Initial Margin = Number of Contracts * Number of Barrels per Contract *…

Answered: D-2024, a financial manag Oil Future…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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D-2024, a financial manag Oil Future contract calls E the contract, respectivel- date (200 x 1,000 x $95.0 contract for 10 business e Oil Future contract per