Suppose on March 1 you take a long position in a June crude oil futures contract...

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Finance

Suppose on March 1 you take a long position in a June crude oilfutures contract at $50/barrel (contract size = 1,000 barrels) .How much cash or risk?free securities would you have to deposit tosatisfy an initial margin requirement of 5%? Calculate the valuesof your commodity account on the following days, given thefollowing settlement prices:
3/2 $50.50
3/3 50.75
3/4 50.25
3/5 49.50
3/8 49.00
3/9 50.00
If the maintenance margin requirement specifies keeping thevalue of the commodity account equal to 100% of the initial marginrequirement each day, how much cash would you need to deposit inyour commodity account each day?

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Initial margin requirement contract pricecontract sizeinitial margin requirement rate 5010005 500005 2500 2500 cash or worth of riskfree securities needs to be deposited for initial margin requirement Value of See Answer

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Suppose on March 1 you take a long position in a June crude oilfutures contract at $50/barrel (contract size = 1,000 barrels) .How much cash or risk?free securities would you have to deposit tosatisfy an initial margin requirement of 5%? Calculate the valuesof your commodity account on the following days, given thefollowing settlement prices:3/2 $50.503/3 50.753/4 50.253/5 49.503/8 49.003/9 50.00If the maintenance margin requirement specifies keeping thevalue of the commodity account equal to 100% of the initial marginrequirement each day, how much cash would you need to deposit inyour commodity account each day?