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Question III: The current value of an S&R futures is 1000$. You buy 50 futures on the S&R and the contract size is 500$. The
Question III: The current value of an S&R futures is 1000$. You buy 50 futures on the S&R and the contract size is 500$. The margin is settled on a weekly basis and the margin is 12.5% of the notional value. Margin calls are made as soon as the the margin is below 75% of the initial margin level. We assume that r = 5%. Use an Excel spreadsheet to calculate the profit over the whole period for a) Futures and b) Forward contract. Upload your Excel Spreadsheet with the detailed calculations on Avenue to Learn under Assessments/As- signments/Assignment II (Question III). Please write your name on Excel file. Question III: The current value of an S&R futures is 1000$. You buy 50 futures on the S&R and the contract size is 500$. The margin is settled on a weekly basis and the margin is 12.5% of the notional value. Margin calls are made as soon as the the margin is below 75% of the initial margin level. We assume that r = 5%. Use an Excel spreadsheet to calculate the profit over the whole period for a) Futures and b) Forward contract. Upload your Excel Spreadsheet with the detailed calculations on Avenue to Learn under Assessments/As- signments/Assignment II (Question III). Please write your name on Excel file
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