You have decided to purchase 18 oil futures contracts at a settle price of $53.40 per barrel. Each futures contract has a standard size of 1,000 barrels and an initial margin requirement of $3,204.

a. What is the leverage factor associated with these contracts? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Leverage =

b. If oil rises to $55.30 per barrel, what is the total percentage return on your futures position? (Do not round intermediate calculations. Round your answer to 1 decimal place.)

Levered return =

%

c. What is the total percentage return on your futures position if oil falls to $52.25 per barrel? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

Levered return =

%