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4- A person decides to invest $1,000,000 in the DJIA while, at the same time, taking the short in a mini Dow futures contract.

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4- A person decides to invest $1,000,000 in the DJIA while, at the same time, taking the short in a mini Dow futures contract. At the time the investment was made, the DJIA was 34,358 and it was expected to vary 2% in either direction (up or down). The futures contract for the investment horizon was at 34,218. The mini Dow futures contract size is $5*DJIA index. Calculate the gains and losses with and without futures contract.

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