1. You are given that: An investor enters a long futures contract. The bounds for the margin are 7% and 10% (with respect to the futures price). The risk-free rate is 5%. The delivery time T = 4 months. Investing or borrowing the marking-to-market payments are not allowed. The incomplete cash flow table is given below. Note that S(3) is not provided and margin 1 for t= 3 months is 12.93 t-months S(o f(0.4/12) 0 95 1 90 2 85 m2m margin 1 payment margin 2 opening 0 12.93 4 95 closing total () 5 pts Find S(3) ( 15 pts Find the sum of the pave 1. You are given that: An investor enters a long futures contract. The bounds for the margin are 7% and 10% (with respect to the futures price). The risk-free rate is 5%. The delivery time T = 4 months. Investing or borrowing the marking-to-market payments are not allowed. The incomplete cash-flow table is given below. Note that S(3) is not provided and margin 1 for t = 3 months is 12.93. t-months SOF(1,4/12) m2m margin 1 payment margin 2 0 95 opening: 0 1 90 2 85 3 12.93 4 95 closing total: (a) (5 pts) Find S(3). (b) (5 pts) Find the sum of the payments. 1. You are given that: An investor enters a long futures contract. The bounds for the margin are 7% and 10% (with respect to the futures price). The risk-free rate is 5%. The delivery time T = 4 months. Investing or borrowing the marking-to-market payments are not allowed. The incomplete cash flow table is given below. Note that S(3) is not provided and margin 1 for t= 3 months is 12.93 t-months S(o f(0.4/12) 0 95 1 90 2 85 m2m margin 1 payment margin 2 opening 0 12.93 4 95 closing total () 5 pts Find S(3) ( 15 pts Find the sum of the pave 1. You are given that: An investor enters a long futures contract. The bounds for the margin are 7% and 10% (with respect to the futures price). The risk-free rate is 5%. The delivery time T = 4 months. Investing or borrowing the marking-to-market payments are not allowed. The incomplete cash-flow table is given below. Note that S(3) is not provided and margin 1 for t = 3 months is 12.93. t-months SOF(1,4/12) m2m margin 1 payment margin 2 0 95 opening: 0 1 90 2 85 3 12.93 4 95 closing total: (a) (5 pts) Find S(3). (b) (5 pts) Find the sum of the payments