You expect the stock market to increase, but instead of acquiring stock, you decide to acquire a stock index futures contract. That index is currently 58.7, and the contract has a value that is $700 times the amount of the index. The margin requirement is $3,500.

1. When you make the contract, how much must you put up? Round your answer to the nearest dollar.

   $

2. What is the value of the contract based on the index? Round your answer to the nearest dollar.

   $

3. If the value of the index rises 1 percent to 59.287, what is the profit on the investment? Round your answer to the nearest cent.

   $

   What is the percentage earned on the funds you put up? Round your answer to one decimal place.

   %

4. If the value of the index declines 1 percent to 58.113, what percentage of your funds will you lose? Round your answer to one decimal place. Enter your answer as a positive value.

   %

5. What is the percentage you earn (or lose) if the index falls to 53.7? Round your answer to one decimal place. Enter your answer as a positive value.

   The percentage -Select-profitlossItem 6 is %.