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assuming you have acquired a market position in 2000 futures underlying the stock of Andromeda, a one year duration with a 20% insurance margin. The
assuming you have acquired a market position in 2000 futures underlying the stock of Andromeda, a one year duration with a 20% insurance margin. The current price of the futures contract is 160 euros, the current share price is 110 euros, the company is expected to distribute 1.5 euros dividend next year and the yield on the 10-year government bond is 3%. The percentage gain from the futures contract, when the current share price is 128 euros, will be a. -98% b. -100% c. 0 euro d. 100% e. None of the above
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