The multiplier for a futures contract on the stock market index is $250. The maturity of the contract is one year, the current level of the index is 1,200, and the risk-free interest rate is .5% per month. The dividend yield on the index is .2% per month. Suppose that after one month, the stock index is at 1,220.

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 $15,000.

DO NOT COPY FROM CHEGG I NEED A FULL EXPLANATION.