question archive If you enter in a short position in oil futures by depositing an initial margin of $200, what will be your account balance at day 5, assuming the following daily prices? (10 pts) Day 0 $1,824 Day 1 $1,856 Day 2 $1,886 Day 3 $1,872 Day 4 $1,868 Day 5 $1,892
If you enter in a short position in oil futures by depositing an initial margin of $200, what will be your account balance at day 5, assuming the following daily prices? (10 pts) Day 0 $1,824 Day 1 $1,856 Day 2 $1,886 Day 3 $1,872 Day 4 $1,868 Day 5 $1,892
Subject:FinancePrice:2.86 Bought22
If you enter in a short position in oil futures by depositing an initial margin of $200, what will be your account balance at day 5, assuming the following daily prices? (10 pts) Day 0 $1,824 Day 1 $1,856 Day 2 $1,886 Day 3 $1,872 Day 4 $1,868 Day 5 $1,892
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Our initial margin = $200
Price of contract at Day 0 = $1,824
Price of contract at Day 5 = $1,892
Change in Price = Day 5 - Day 0 = 1892 - 1824 = +$68
Since the price has increased by +$68, our short position will be down by the same amount of -$68
Hence our end margin will be $200 -$68 = $132
