FinTrade has just introduced a single$-$stock futures contract on Brandex stock, a company that currently pays no dividends. Each contract calls for delivery of $2,500$ shares of stock in one year. The T$-$bill rate is $9\%$ per year.

Required:

If Brandex stock now sells at $$110$ per share, what should the futures price be$?$

If the Brandex price drops by $6\%,$ what will be the change in the futures price and the change in the investor$$s margin account?

If the margin on the contract is $$13,700,$ what is the percentage return on the investor$$s position?