Suppose that you bought a contract at 2742 putting up the


The crude oil futures contract on the New York Mercantile Exchange covers 1,000 barrels of crude oil. The contract is quoted in dollars and cents per barrel, e.g., $27.42, and the minimum price change is $0.01.

The initial margin requirement is $3,375 and the maintenance margin requirement is $2,500.

Suppose that you bought a contract at $27.42, putting up the initial margin. At what price would you get a margin call?

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Financial Management: Suppose that you bought a contract at 2742 putting up the
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