a. Turn to Figure 17.1 and locate the contract on the Standard & Poor’s 500 Index. If the margin requirement is 10% of the futures price times the multiplier of $250, how much must you deposit with your broker to trade the March contract?

b. If the March futures price were to increase to 790, 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 fi gure?

c. If the March futures price falls by 1%, what is the percentage gain or loss on your net investment?

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