Details of this Paper

A company enters into a long futures contract to b...

Description

Solution


Question

A company enters into a long futures contract to buy 1,000 barrels of oil for $62 per barrel. The initial margin is $10,000 and the maintenance margin is $4,000. What oil futures price will trigger a margin call? Answer is 56 +-1, need step by step work shown as to how the answer was gotten.

 

Paper#8794 | Written in 18-Jul-2015

Price : $25
SiteLock