question archive Alfred takes the short position on 10 oil futures contracts at a futures price of $75 per barrel
Alfred takes the short position on 10 oil futures contracts at a futures price of $75 per barrel
Subject:FinancePrice:2.87 Bought7
Alfred takes the short position on 10 oil futures contracts at a futures price of $75 per barrel. Each contract is on 1,000 barrels of oil. Settlement prices on the next 4 days are given as follows:
Day
Price
1 $75.50
2 $79
3 $77
4 $75
The exchange enforces an initial margin requirement of 10% and a maintenance margin of 5%.
The minimum amount that Alfred must deposit in his futures margin account to take his desired position is closest to:
$75,000
$37,500
$750,000
Option 1
Low Cost Option
Download this past answer in few clicks
2.87 USD
PURCHASE SOLUTION
Option 2
Custom new solution created by our subject matter experts
GET A QUOTE
rated 5 stars
Purchased 7 times
