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a. Refer to Figure 17.1 and locate the contract on the Standard & Poor’s 500 Index. If the margin requirement is 12% of the futures price times the multiplier of $250, how much must you deposit with your broker to trade the December contract? (Input the amount as positive value. Round your answer to 2 decimal places.)

Required margin            $

b. If the December futures price were to increase to 1,210, what percentage return would you earn on your net investment if you entered the long side of the contract at the price shown in the figure? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Percentage return             %

c. If the December futures price falls by 2.2%, what is the percentage gain or loss on your net investment? (Input the amount as positive value. Do not round intermediate calculations.)

Percentage Gain or Loss and ------ %

Financial Management, Finance

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