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Refer to the Mini-S&P contract in Figure 22.1. Assume the closing price for this day. Required: a. If the margin requirement is 29% of
Refer to the Mini-S&P contract in Figure 22.1. Assume the closing price for this day. Required: a. If the margin requirement is 29% of the futures price times the contract multiplier of $50, how much must you deposit with your broker to trade the June maturity contract? b. If the June futures price increases to $4,406, what percentage return will you earn on your investment if you entered the long side of the contract at the price shown in the figure? c. If the June futures price falls by 1%, what is your percentage return? Complete this question by entering your answers in the tabs below. Required A Required B Required C If the margin requirement is 29% of the futures price times the contract multiplier of $50, how much must you deposit with your broker to trade the June maturity contract? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Required margin deposit
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