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please do part 1 and 2 Tori Reynolds has been an avid stock macket investor foc years. She manages her partfolo faily aggrossively and ikes
please do part 1 and 2
Tori Reynolds has been an avid stock macket investor foc years. She manages her partfolo faily aggrossively and ikes to shon-sel whenever the opportunily presents itselt. Recenty, she has become fascinated with stock-index futures, especially the idea of being able to play the market as a whcle. Tori thiniks the markel is beaced down, and she decides to shot sell sorre ssp 500 Stock.thdex futures. Assume she shorts 2 contracts at 1,413.04 and has to make a margin depost of 519,736 for each contract. How much proft wit she make, and what wal hor return on Invested capital be if the market does indeed drop so that the CME contracts are trading at 1,395.39 by the tme they expire? (The mulbple on one 56P500 index future contract is $250.) Step by Step Solution
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