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One Chicago has just introduced a new single stock futures contract on the stock of Brandex, a company that currently pays no dividends. Each contract
One Chicago has just introduced a new single stock futures contract on the stock of Brandex, a company that currently pays no dividends. Each contract calls for delivery of 1,500 shares of stock in one year. The T-bill rate is 4% per year. If Brandex stock now sells at $170 per share, what should the futures price be? (Round your answer to 2 decimal places.) If the Brandex stock price drops by 2.0%, what will be the change in the futures price and the change in the margin account of an investor who took the long position in this futures contract? (Input all amounts as positive values. Do not round intermediate calculations. Round your answers to 2 decimal places.) If the margin on the contract is $20,000, what is the percentage return on the investor's position? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)
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