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Sagot :
Answer:
For $2,000 to be withdrawn from the margin account, the oil futures price must be $62.
Explanation:
a) Data and Calculations:
Price of the long futures contract to buy 4,000 barrels of oil = $62.50 per barrel
Initial margin = $62.50 * 4,000
b) If the futures price is fixed at $62 per barrel and the initial margin per barrel already opened with a broker is $62.50, then the security investor can withdraw $2,000 ($0.50 * 4,000) from the margin account. This will result in an excess of $0.50 per barrel. Computationally, $0.50 * 4,000 = $2,000.
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