Show the margin account balance for a trader in the long side, with contract price...
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Show the margin account balance for a trader in the long side, with contract price of $79 and the following daily price change: Date Price 1 80.58 2 81.35 3 82.08 76.8 4 1 Size 5 Example: Suppose the WTI contract has a contract specification of 1,000 barrels per contract and initial margin of $5,300 per contract 6 It means both the long and short side have to put in 56,300 for each contract they own. 7 Suppose the WTI is currently traded for $80 a barrel. The futures price for contracts that are maturing soon will have similar price. The contract size=price barrels per contract 80000 10 80000 Maintenance margin 12 margin 6300 $5,400 13 Leverage 12.64841 14 5 suppose a hedger shorted 100 contract at $78 that matures in 6 months. 16 The short side has to deliver 100,000 barrels of oil at 578 a barrel in 6 months 17 18 Date Price Change Margin balance Addition 19 1 -1500 4800 1500 0 2 -1800 4500 1800 77.2 4100 10400 4100 -2 83 5800 4600 79.5 81.3 3 1700 Show the margin account balance for a trader in the long side, with contract price of $79 and the following daily price change: Date Price 1 80.58 2 81.35 3 82.08 76.8 4
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