a. Refer to the table below and locate the E-Mini contract on the Standard & Poor's 500 Index. If the margin requirement is 10% of the futures price times the multiplier of $50, how much must you deposit with your broker to buy one March contract? Note: Round your answer to 2 decimal places. Index Futures Contract Open High Low Settle Change Open Interest Mini DJ Industrial Average (CBT)-$5 x index December 30,711 38,818 30,254 30,860 March 23 30,905 31,821 30,485 30,680 -116 -115 68,458 767 Mini S&P see (CME)-$se x index December 3759.75 SZOLLE 3676.75 3707.25 -25.50 March 23x 3791.25 3804-25 3707.75 3738.00 -25.50 2,288,063 43,134 Mini S&P Midcap 400 (CME)-$100 x index December 2356.80 2368.40 2282.70 2306.40 -41-20 54.941 March 23x 2306.90 -41-20 Mini Nasdaq 100 (CME)-$20 x index December 11328.25 11382.75 1049.00 11153.25 -45-50 269.975 March 23x 11437.00 11493.25 11167.00 11268.50 43.75 Mini Russell 2000 (CEM)-$50 x index December 1771.90 1779.70 1712.70 1732.30 -29.60 March 23x 1784.40 1794.00 1728.30 -29-20 535.545 263 Mini Russell 1800 (CEM) $50 x index December 2039.60 2056.30 2021.10 2837.50 16.90 9.210 U.S. Dollar Index (ICE US)-$1,000 x index December March 23x 111.82 111.43 111.78 111.41 54.413 819 Required margin b. If the March futures price increases to 3,800, what percentage return will you earn on your investment? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Percentage return c. If the March futures price falls by 2.1%, what is the percentage gain or loss on your investment? Note: Input the amount as a positive value. Use the dropdown to Indicate whether there is a gain or loss. Do not round Intermediate calculations. Round your answer to 2 decimal places.
a. Refer to the table below and locate the E-Mini contract on the Standard & Poor's 500 Index. If the margin requirement is 10% of the futures price times the multiplier of $50, how much must you deposit with your broker to buy one March contract? Note: Round your answer to 2 decimal places. Index Futures Contract Open High Low Settle Change Open Interest Mini DJ Industrial Average (CBT)-$5 x index December 30,711 38,818 30,254 30,860 March 23 30,905 31,821 30,485 30,680 -116 -115 68,458 767 Mini S&P see (CME)-$se x index December 3759.75 SZOLLE 3676.75 3707.25 -25.50 March 23x 3791.25 3804-25 3707.75 3738.00 -25.50 2,288,063 43,134 Mini S&P Midcap 400 (CME)-$100 x index December 2356.80 2368.40 2282.70 2306.40 -41-20 54.941 March 23x 2306.90 -41-20 Mini Nasdaq 100 (CME)-$20 x index December 11328.25 11382.75 1049.00 11153.25 -45-50 269.975 March 23x 11437.00 11493.25 11167.00 11268.50 43.75 Mini Russell 2000 (CEM)-$50 x index December 1771.90 1779.70 1712.70 1732.30 -29.60 March 23x 1784.40 1794.00 1728.30 -29-20 535.545 263 Mini Russell 1800 (CEM) $50 x index December 2039.60 2056.30 2021.10 2837.50 16.90 9.210 U.S. Dollar Index (ICE US)-$1,000 x index December March 23x 111.82 111.43 111.78 111.41 54.413 819 Required margin b. If the March futures price increases to 3,800, what percentage return will you earn on your investment? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Percentage return c. If the March futures price falls by 2.1%, what is the percentage gain or loss on your investment? Note: Input the amount as a positive value. Use the dropdown to Indicate whether there is a gain or loss. Do not round Intermediate calculations. Round your answer to 2 decimal places.
Chapter5: Currency Derivatives
Section: Chapter Questions
Problem 27QA
Related questions
Question
Transcribed Image Text:a. Refer to the table below and locate the E-Mini contract on the Standard & Poor's 500 Index. If the margin requirement is 10% of the
futures price times the multiplier of $50, how much must you deposit with your broker to buy one March contract?
Note: Round your answer to 2 decimal places.
Index Futures
Contract
Open
High
Low
Settle
Change
Open
Interest
Mini DJ Industrial Average (CBT)-$5 x index
December
30,711
38,818
30,254
30,860
March 23
30,905
31,821
30,485
30,680
-116
-115
68,458
767
Mini S&P see (CME)-$se x index
December
3759.75
SZOLLE
3676.75
3707.25
-25.50
March 23x
3791.25
3804-25
3707.75
3738.00
-25.50
2,288,063
43,134
Mini S&P Midcap 400 (CME)-$100 x index
December
2356.80
2368.40
2282.70
2306.40
-41-20
54.941
March 23x
2306.90
-41-20
Mini Nasdaq 100 (CME)-$20 x index
December
11328.25
11382.75
1049.00
11153.25
-45-50
269.975
March 23x
11437.00
11493.25
11167.00
11268.50
43.75
Mini Russell 2000 (CEM)-$50 x index
December
1771.90
1779.70
1712.70
1732.30
-29.60
March 23x
1784.40
1794.00
1728.30
-29-20
535.545
263
Mini Russell 1800 (CEM) $50 x index
December
2039.60
2056.30
2021.10
2837.50
16.90
9.210
U.S. Dollar Index (ICE US)-$1,000 x index
December
March 23x
111.82
111.43
111.78
111.41
54.413
819
Required margin
b. If the March futures price increases to 3,800, what percentage return will you earn on your investment?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Percentage return
c. If the March futures price falls by 2.1%, what is the percentage gain or loss on your investment?
Note: Input the amount as a positive value. Use the dropdown to Indicate whether there is a gain or loss. Do not round
Intermediate calculations. Round your answer to 2 decimal places.
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