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Problem 1 7 - 1 4 ( Algo ) The multiplier for a futures contract on the stock - market index is $ 5 0

Problem 17-14(Algo)
The multiplier for a futures contract on the stock-market index is $50. The maturity of the contract is one year, the current level of the
index is 2,000, and the risk-free interest rate is 0.5% per month. The dividend yield on the index is 0.2% per month. Suppose that after
one month, the stock index is at 2,035.
Required:
a. Find the cash flow from the mark-to-market proceeds on the contract. Assume that the parity condition always holds exactly. (Do not
round intermediate calculations. Round your answer to 2 decimal places.)
Answer is complete but not entirely correct.
b. Find the one-month holding-period return if the initial margin on the contract is $15,000.(Do not round intermediate calculations.
Round your answer to 2 decimal places.)
Answer is complete but not entirely correct.
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