Suppose the initial margin on heating oil futures

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Suppose the initial margin on heating oil futures is $12,500, the maintenance margin is $11,000 per contract, and you establish a long position of 15 contracts today, where each contract represents 36,000 gallons. Tomorrow, the contract settles down $0.07 from the previous day’s price. What is the maximum price decline on the contract that you can sustain without getting a margin call?

Reference no: EM131047560

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