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Is the following statement true, false or uncertain? Explain your response. At time t, I open...

Is the following statement true, false or uncertain? Explain your response. At time t, I open up a long position in 10 crude oil futures contracts at $60/barrel. Each contract is written on 250 barrels of crude oil. At time T, if I close out my position at $62.50/barrel, the balance in my margin account is $6,250.

Solutions

Expert Solution

it is an Uncertain Answer Because we Don't Know About the previous Balance in the margin Acoount, By taking Above Position we will have

Profit = (62.5-60)*250*10 =$6250

But Unfortunetly we dont know what is the previous balance in margin account and we also dont know the % of the margin requirement.

So the Correct Answer is Above Statement is Uncertain.

jeff jeffy answered 2 years ago
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