You purchase four futures contract on 10,000 gallons at a price of $18.75 per gallon. The initial margin is $2,500 per contract, and the maintenance margin is $1,800 per contract. If the contract closes at $18.71 per gallon, what is your new margin balance?
A) $11,600
B) $7,200
C) $7,700
D) $8,400
E) $7,900

Question

Quizplus · Accepted Answer

The Answer of You purchase four futures contract on 10,000 gallons at a price of $18.75 per gallon. The initial margin is $2,500 per contract, and the maintenance margin is $1,800 per contract. If the contract closes at $18.71 per gallon, what is your new margin balance?
A) $11,600
B) $7,200
C) $7,700
D) $8,400
E) $7,900

You Purchase Four Futures Contract on 10,000 Gallons at a Price