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a.).Suppose you purchase an interest rate futures contract that has an initial margin requirement of 10% and a futures price of $112,459. The contract has
a.).Suppose you purchase an interest rate futures contract that has an initial margin requirement of 10% and a futures price of $112,459. The contract has a $100,000 underlying par value bond. If the futures price falls to $110,000, what loss on your money invested will you experience as a result?
b.)the current level of the S&P 500 is 650. The dividend yield on the S&P 500 is 5%. The risk-free interest rate is 7%. Given this information, what should the futures price quote for a contract on the S&P 500 due to expire 6 months from now be?
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