What is the maximum price decline on the contract

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Problem - Suppose the initial margin on heating oil futures is $20,100, the maintenance margin is $15,000 per contract, and you establish a long position of 18 contracts today, where each contract represents 26,000 gallons. Tomorrow, the contract settles down $.10 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: EM132898099

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