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Refer to the Mini-S&P contract in Figure 22.1. Assume the closing price for this day. a. If the margin requirement is 22% of the
Refer to the Mini-S&P contract in Figure 22.1. Assume the closing price for this day. a. If the margin requirement is 22% of the futures price times the contract multiplier of $50, how much must you deposit with your broker to trade the June maturity contract? (Round your answer to the nearest whole dollar.) Required margin deposit b. If the June futures price increases to 2596.70, 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? (Do hot round intermediate calculations. Round your answer to 2 decimal places.) Percentage return on net investment % c. If the June futures price falls by 1%, what is your percentage return? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Percentage return on net investment %
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