6. Suppose that the value of the S&P 500 stock index is 1,350.

a. If each futures contract costs $25 to trade with a discount broker, how much is the transaction cost per dollar of stock controlled by the futures contract?

b. If the average price of a share on the NYSE is about $40, how much is the transaction cost per “typical share” controlled by one futures contract?

c. For small investors, a typical transaction cost per share in stocks directly is about 15 cents per share. How many times the transactions costs in futures markets is this?