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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?
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