Sample Question #218 (finance – ROI)
I’ll give you the following facts: since February this year, the crude oil futures price (on NYMEX) has gone from $50 to $86 per barrel. Each crude oil futures contract covers 1,000 barrels, which means at $50 a barrel, a contract is worth $50,000. The initial margin of a contract is $4,000 and the maintenance margin is $3,500. [Note: these margin numbers may not be current.]
Now, if you bought a contract at $50 in early February, what’s the ROI you would have made by now?