4. You are a speculator in stock index futures. You are bullish on the market, especially blue chip stocks. The Dow Jones Industrial Average (DJIA) futures contract trades at $10 x index and the current index value is 12,427. a. What position should you take? b. If you have to put down 5% of the contract size as the initial margin, what is your deposit for one contract? c. Calculate your holding period return for one contract if DJIA increases by 10% from the current index value of 12427? 5. Suppose you think the price of gold will decrease by June. The gold futures contract trades is for 100 troy oz. and the current contract price for gold futures is 1273.20 per troy oz. a. What is the value of one gold contract using the settle price in the quote? b. What position will you take in the futures contracts (Long or Short)? c. If the price of gold increases to $1325 per troy oz from the initial price, what is your profit or loss for 3 futures contracts? d. If the price of gold decreases to $1200 per troy oz from the initial price, what is your profit or loss for 3 futures contract?