Business, 16.01.2020 01:31 wendy1538

One chicago has just introduced a new single stock futures contract on the stock of brandex, a company that currently pays no dividends. each contract calls for delivery of 1,000 shares of stock in one year. the t-bill rate is 6% per year.

a. if brandex stock now sells at $120 per share, what should the futures price be?

b. if the brandex stock price drops by 3%, what will be the change in the futures price and the change in the investor’s margin account?

c. if the margin on the contract is $12,000, what is the percentage return on the investor’s position?

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One chicago has just introduced a new single stock futures contract on the stock of brandex, a compa...

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