What initial margin deposit would the investor have to make

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Reference no: EM131308044

Suppose an investor took a 3-month long position on one crude oil futures contract (each futures contract for crude oil is written for 1, 000 barrels). The futures price per barrel was $45. If the margin requirement were 5% of the value of the contract, what initial margin deposit would the investor have to make? At the end of the trading day, crude oil futures prices rose to $46 per barrel. The contract is marked to market each trading day. Would this investor pay or receive money from the counter-party with the short position? How much?

Reference no: EM131308044

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