What is the maximum price decline on the contract

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Reference no: EM131618123

Suppose the initial margin on heating oil futures is $14,100, the maintenance margin is $13,000 per contract, and you establish a long position of 17 contracts today, where each contract represents 31,000 gallons. Tomorrow, the contract settles down $0.09 from the previous day’s price. What is the maximum price decline on the contract that you can sustain without getting a margin call? (Round your answer to 3 decimal places.)

Reference no: EM131618123

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