a. The maturity of a futures contract on a stock market index is 4 months. The multiplier for the futures contract $250. The current level of the index is 32,000 . The risk-free rate is 0.6% per month and dividend yield on the stock market index is 0.3% per month. The initial margin requirement is 10%. i. What is the parity value of the futures price now? ( 3 marks) ii. Assume the futures contract is fairly priced. How much initial margin you need to deposit if you long 5 contracts? (2 marks) iii. Calculate the one-month holding-period return for your long position in the futures contract if the stock market index increases to 33,000 one month later. Assume the futures contract keeps being priced fairly. ( 5 marks) b. Alex sells six September futures contracts on silver. Each contract is for the delivery of 5,000 troy ounces. The current futures price is $22.205 per ounce. The initial margin is $9,350 per contract and the maintenance margin is $8,500 per contract. What is the futures price per ounce that would lead to a margin call? (3 marks) a. The maturity of a futures contract on a stock market index is 4 months. The multiplier for the futures contract $250. The current level of the index is 32,000 . The risk-free rate is 0.6% per month and dividend yield on the stock market index is 0.3% per month. The initial margin requirement is 10%. i. What is the parity value of the futures price now? ( 3 marks) ii. Assume the futures contract is fairly priced. How much initial margin you need to deposit if you long 5 contracts? (2 marks) iii. Calculate the one-month holding-period return for your long position in the futures contract if the stock market index increases to 33,000 one month later. Assume the futures contract keeps being priced fairly. ( 5 marks) b. Alex sells six September futures contracts on silver. Each contract is for the delivery of 5,000 troy ounces. The current futures price is $22.205 per ounce. The initial margin is $9,350 per contract and the maintenance margin is $8,500 per contract. What is the futures price per ounce that would lead to a margin call