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Show your work Question #5: Financial Futures [15 Points] NASDAQ 100 Sep 22 6,400 The chart above shows a quote for a futures contract on
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Question #5: Financial Futures [15 Points] NASDAQ 100 Sep 22 6,400 The chart above shows a quote for a futures contract on the NASDAQ 100 (a) If the margin requirement is 10%, how much must you deposit into your margin account to trade the September 2022 contract? [Hint: The futures price for the NASDAQ is multiplied by a multiple of S100 to get the total contract value][3 Points) (b) If the NASDAQ were to decrease to 6,187, what would be your percentage return on your investment if you entered the long side of the contract at the price shown in the figure? [6 Points] (c) If the NASDAQ rises to 7,000, what is the percentage gain or loss on your net investment? [6 Points] Step by Step Solution
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