Eric has just purchased a heating oil contract at $2.05 per gallon. The contract size is 21,000 gallons. Initial margin is $6,075; maintenance margin is $4,500. If the price of heating oil is $2.15 when the contract expires, Eric's profit or loss is
A) $(2,100) loss.
B) $2,100 profit.
C) $(3,975) loss.
D) $(2,400) loss.
Answer: B
Business
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