2. [3 points) Assume the initial margin on crude oil is $4,980 per contact and...
70.2K
Verified Solution
Link Copied!
Question
Finance
2. [3 points) Assume the initial margin on crude oil is $4,980 per contact and the maintenance margin is $4,525 per contract. Adam entered into a short futures position on crude oil in the April 2021 contract. Each contract is for 1,000 barrels. Determine at what price Adam will experience a margin call? The current price is $55.81 per barrel. Adam has 7 contracts
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
