The multiplier for a futures contract on a stock market index is $$90.$ The maturity of the contract is one year, the current level of the index is $$4,700,$ and the risk$-$free interest rate is $0\mathrm{.}7\%$ per month. The dividend yield on the index is $0\mathrm{.}3\%$ per month. Suppose that after one month, the stock index is at $4,750.$

Required:

a$.$ Find the cash flow from the mark$-$to$-$market proceeds on the contract. Assume that the parity condition always holds exactly.

b$.$ Find the holding$-$period return if the initial margin on the contract is $$10,800.$

Complete this question by entering your answers in the tabs below.

Required $A$

Required B

Find the cash flow from the mark$-$to$-$market proceeds on the contract. Assume that the parity condition always holds exactly.

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.