OneChicago 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 1,000 shares of stock in one year. The T-bill rate is 4% per year.

Required:

a. If Brandex stock now sells at $120 per share, what should the futures price be? (Round your answer to 2 decimal places.)

b. Brandex stock now sells at $120 per share. If the Brandex stock price drops by 3%, what will be the new futures price and the change in the investor's margin account? (Input all amounts as positive values. Do not round intermediate calculations. Round your answers to 2 decimal places.)

c. Brandex stock now sells at $120 per share. If the margin on the contract is $12,000, what is the percentage return on the investor's position, if the Brandex stock price drops by 3%? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 1 decimal place.)