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Business, 17.12.2019 05:31 crybabyyy1494

The multiplier for a futures contract on a certain stock market index is $250. the maturity of the contract is one year, the current level of the index is 1,500, and the risk-free interest rate is 0.2% per month. the dividend yield on the index is 0.1% per month. suppose that after one month, the stock index is at 1,533.

a. find the cash flow from the mark-to-market proceeds on the contract. assume that the parity condition always holds exactly. (do not round intermediate calculations. round your answer to 2 decimal places.) cash flow $

b. find the holding-period return if the initial margin on the contract is $15,000. (do not round intermediate calculations. round your answer to 2 decimal places.) holding-period return %

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