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The multiplier for a future contract on the stock market index is $250. The maturity of the contract is one year, the current level of

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The multiplier for a future contract on the stock market index is $250. The maturity of the contract is one year, the current level of the index is 700, and the risk free interest rate is 0.6% per month. The dividend yield on the index is 03 per month suppose that after one month the stock index is 711 a. Find the cash flow from the mark to market proceeds on the contract. Assume that the party condition always holds exactly (Do not round intermediate calculations. Round your answer to 2 decimal places) Cash flow b. Find the one-month holding period return the initial margin on the contract is $10.000 (Do not found intermediate calculations. Round your answer to 2 decimal places.) Holong period retum

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