Unformatted text preview: not get a margin call. b. Let us say that the two days later, the price of crude oil drops to $65.00. What is the balance in the margin account? Will the speculator get a margin call? The speculator has suffered an open position loss of $5000 and his account balance drops to $5000. Yes, he will get a margin call to increase the balance to the initial level of $9788 or quit his position. He can use the remaining balance for new trading....
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This note was uploaded on 02/13/2012 for the course ECON 423 taught by Professor Vd during the Spring '08 term at UNC.
- Spring '08