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only need part c answered. the rest is correct, thank u. OneChicago has just introduced a new single stock futures contract on the stock of
only need part c answered. the rest is correct, thank u.
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 3,000 shares of stock in one year. The T-bill rate is 4% per year. Required: a. If Brandex stock now sells at $290 per share, what should the futures price be? (Round your answer to 2 decimal places.) b. Brandex stock now sells at $290 per share. If the Brandex stock price drops by 2.0%, 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 $290 per share. If the margin on the contract is $60.000, what is the percentage return on the investor's position, if the Brandex stock price drops by 2.0% ? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Step by Step Solution
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