a. Look at the Mini-S&P 500 contract in Figure 22.1. If the margin requirement is 10% of the futures price times the contract multiplier of $50, how much must you deposit with your broker to trade the September maturity contract?
b. If the September futures price were to increase to 2,090, 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?
c. If the September futures price falls by 1 %, what is your percentage return?

Transcribed Image Text:

Futures Contracts | WSJ.com/commodities Metal & Petroleum Futures Contract Open High hi lo low Setle July Copper-High (CMX)-25,000 lbs.; $ per lb. July 22290 2.2455 2.1615 Sept 22300 2.2480 2.1620. Gold (CM))-100 troy oz: $ per troy oz. 1012.20 1350.00 1030.70 1354.40 10.70 2,070 1345.00 1360.30 1338.50 1351.70 19.70 440,422 Oct 1345.00 1363.50 1345.00 1361.20 19,70 37,171 Dec 1352 10 1366.90 1345.70 1365.80 19.80 106,265 Feb 17 1353.30 1369.101353.30 1361.90 19.90 June 1374.30 20.00 Aug 1355.00 1373.80 1357.30 Palladium (NVM)-50 troy oz; $ per troy oz 609.00 609.00 617.40 Aug 609.00 Sept 605.65 590.60 Dec 609.65 612.80 598.05 49.35 46.33 49.90 50.03 47.00 50.45 50.62 47.61 48.51 50.92 51.20 49.07 Dec 51.59 51.75 Dec 17 54,24 54.40 51.94 Platinum (NYM)-50 troy oz. $ per troy oz.. Oct July 1064.60 1073.20 1052.00 1071.00 102.00 1070 20 1050.30 107.00 Silver (CMO)-5.000 troy oz.: $ per troy oz. July 13.755 21.095 A 19.625 19866 0.322 Sept 13.840 21.225 A 19.610 19907 0.319 Crude Oil, Light Sweet (NYM)-1,000 bbls.: i per bbl. Aug 49,11 46.60 -2.39 41.29 -2.36 Sept Oct 41.91 -2.34 Nov 41.51 -2.31 45.07 -2.27 51.27 -1.82 Aug Sept Nat NY Harbor ULSD (NYM)-42,000 gal.; $ per gal 1.456 Aug 15174 1.5250 March 15343 1.5444 1.4673 1.4333 1.4548 Gasoline-NY RBOB (NYM) -42,000 gal.; $ per gal 15176 1.5249 1.4157 15223 1.5317 1.4274 Chg 2.1815 -0.0335 3,552 2.1835 -0.0335 108,854 601.85 -3.00 -3.00 601.65 601.35 -2.90 C-10 m. 17.70 10.00 Open interest -0000 -0637 1.4287 0848 1.4413 0787 ruunu 15,796 12.523 3 21,127 492 635 52,016 1,989 159,362 418,068 282,684 106,633 108,604 244,771 140,180 93.230 66,430 118,778 78,861 Contract Open High hi lo low Settle. Coffee (ICE-US) 37.500 lbs.; cents perlb July 145.60 143.00 145.00 144.20 Sep 146.20 147.20 144.10 145.55 Suçar-World (ICE-US)-112.000 lbs; cents per lb. Oct 20.56 21.10 20.46 20.87 March 17 20.56 21.13 20.55 20.94 Suçar-Domestic (ICE-US) 112,000 lbs: cents per lb. 28.25 28.05 28.25 27.00 27.00 A 26.65 Sep Jan 17 Cotton (ICE-US)-50,000 lbs 62.92 July Dec 66.14 July Sep 62.92 65.50 28.05 27.00 cents per lb. 62.92 64.25 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. 186.65 185.00 177,20 187.65A 185.00 185.00 174.60 183.60 63.75 65.21 5 Y: Treasury Notes (CBT)-$100,000 Sep 1222-075 122-185 122-027 Open Cig interest -65 -85 09 10 -16 -38 5.80 5.35 137 99,385 13 49 22 150,428 475,726 210,447 30 Day Federal Funds (CBT) $5,000,000; 100-daily avg. July 99.615 99.518 99.615 99.618 -002 Aug 99,625 99.625 99.620 99,625 -005 1,480 1,416 Interest Rate Futures Treasury Bonds (CBT)-$100,000, pts 32nds of 100% Sep 174-130 176-130 173-740 176-080 2-180 June 172-280 174-270 172-140 174-120 2 19.0 Treasury Notes (CBT)-$100,000; pts 12nds of 100% Sep 133-095 133-315 133-000 133-285 25.0 2.777,302 Dec 132-200 133020 132-200 133-000 27/0 2,637 pts 32nds of 100% 122-155 -110 2,644,19 2 Y. Treasury Notes (CBT) $200,000 pts 32nds of 100% 109-210 109-235 109-197 109-227 Sep 1 Month Libor (CME)-$3,000,000, pts of 100%. 0025 July 99.5450 99.5450 99.5425 99.5375 Aug 99.5300 99.5300 99.5300 99.5375 0025 579 14,113 2.5 1,081,786 559 142 82 193,832 167,407 10 rr. Del. Int. Rate Swaps (CBT)300.000, pts 32nds of 100% 108.750 108.875 A 108.469 Sep 108.781 181 25,579 1,602 870