The margin requirement on the S&P 500 futures contract is
8%, and the stock index is currently 2,000. Each contract has a
multiplier of $50.
a. How much margin must be put up for each
contract sold?
b. If the futures price falls by 2% to 1,960, what
will happen to the margin account of an investor who holds one
contract? (Input the amount as a positive
value.)
c-1. What will be the investor's percentage return
based on the amount put up as margin? (Negative value
should be indicated by a minus sign. Round your answer to 2 decimal
places.)
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