Margin Requirement in Future contract (100% correct) - 22148

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FinanceAce

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  • Posted on: Thu 08 Aug, 2013
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Suppose that you enter into a long futures contract to buy May gasoline for $0.80 per gallon on the New York Commodity Exchange. The size of the contract is 42,000 gallons. The initial margin requirement is $2,000, and the maintenance margin is $1,500. What change in the futures price will lead to a margin call?

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Margin Requirem...