Suppose the initial margin on heating oil futures is $6,750, the maintenance margin is $5,000 per contract, and you establish a long position of 10 contracts today, where each contract represents 42,000 gallons. Tomorrow, the contract settles down $0.03 from the previous day's price. Are you subject to a margin call?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Suppose the initial margin on heating oil futures is solve this question Accounting question

Suppose the initial margin on heating oil futures is $6,750,
the maintenance margin is $5,000 per contract, and you
establish a long position of 10 contracts today, where each
contract represents 42,000 gallons. Tomorrow, the contract
settles down $0.03 from the previous day's price. Are you
subject to a margin call?
Transcribed Image Text:Suppose the initial margin on heating oil futures is $6,750, the maintenance margin is $5,000 per contract, and you establish a long position of 10 contracts today, where each contract represents 42,000 gallons. Tomorrow, the contract settles down $0.03 from the previous day's price. Are you subject to a margin call?
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