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please do parts 1-5 One of the unique faatures of futures contracts is that they have only one source of returnthe capial gains that can

please do parts 1-5
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One of the unique faatures of futures contracts is that they have only one source of returnthe capial gains that can accrue whon price movements have an upward bias. Remember that there are no. current cosh flows associated with this financial assel. These instruments are known for their volabilit due to swings in prices and the use of leverege upon purchase With futures trading done on margin, small amounts of capital are needed to control relativoly large investment positione. Assume that you are interested in investing in commodity futures-specifcally, oats futures contracts. Refer to the contract lerms of oota "OATs (CBOT) soco bu cents per bushel." Suppose you. had purchased five Docember oots contracts at the sottement price of 182.57. The required amount of investor capital to be deposted with a broker at tha time of the intial transaction is 6.25% of a contract's value. Answer the following questions concerning the investrnent in futures contracts. a. What is the total amount of your initial margin for the five contracta? b. What is the total amount of bushels of oate that you control? c. What is the purchase price of the oats commodity contracis you control accooding to the December settement date? d. Assume that the Docember oats actually setted at 182.57, anid you decide to sed and take your profi. What is the seling price of the cats commodfy contracis? e. Calculate the retum on invested copital eamed on this transaction. (Remember that the ieturn is based on the amount of funds actually invested in the contract rather than on the value of the contract itsed.) a. The total amount of your initiai margin for the five contracts is 3 (Round to the nearest cont)

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