In the Australian Stock Exchange, the Eastern Australia Canola futures are quoted at 557.50 (quoted in AUD per ton), and the contract size is 20 metric tons.

Required:

1. What is the market value of the contract? (2 marks)
2. Tom buys two contracts at $557.50 (Australian dollar). On the delivery date of the contracts, the price increased to $560.50. How much money did Tom make? (2 marks)
3. What was Tom's return on invested capital, given that the initial margin was 12.50%?