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The multiplier for a futures contract on a stock market index is $145. The maturity of the contract is 1 year, the current level of

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The multiplier for a futures contract on a stock market index is $145. The maturity of the contract is 1 year, the current level of the index is 1,990, and the risk-free interest rate is 0.8% per month. The dividend yleld on the index is 0.3% per month. Suppose that after 1 month, the stock index is at 2,010 . a. Find the cash flow from the mark-to-market proceeds on the contract. Assume that the parity condition always holds exactly, (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Find the holding-period return if the initial margin on the contract is $6,900. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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