What is maximum price decline-without getting margin call

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Suppose the initial margin on heating oil futures is $8,900, the maintenance margin is $8,000 per contract, and you establish a long position of 14 contracts today, where each contract represents 47,000 gallons. Tomorrow, the contract settles down $.06 from the previous day’s price. Are you subject to a margin call? What is the maximum price decline on the contract that you can sustain without getting a margin call?

Reference no: EM13914791

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