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OneChicago 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,
OneChicago 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, 100 shares of stock in 1 year. The T-bill rate is 7% per year. a. If Brandex stock now sells at $180 per share, what should the futures price be? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) b. If the Brandex price drops by 4%, what will be the new futures price and the change in the investor's margin account? (Round intermediate calculations and "Futures price (new)" answer to 3 decimal places and other answer to the nearest dollar amount. Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.) c. If the margin on the contract is $12, 600, what is the percentage return on the investor's position? (Round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign. Omit the "%" sign in your response.)
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