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6. [Chapter 22] OneChicago has just introduced a single-stock futures contract on Brandex stock (no dividends will be paid). Each contract calls for delivery of
6. [Chapter 22] OneChicago has just introduced a single-stock futures contract on Brandex stock (no dividends will be paid). Each contract calls for delivery of 1,000 shares of stock in 1 year. The T-bill rate is 6% per year. a. If Brandex stock now sells at $120 per share, what should the futures price be? b. If the Brandex price drops by 3%, what will be the change in the futures price? What will be the investor 's prot/loss? C. If the margin on the contract is $12,000, what is the percentage return on the investor's position
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