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Alex
4 years ago
14

You purchase an interest rate futures contract that has an initial margin requirement of 14% and a futures price of $121,309. Th

e contract has a $100,000 underlying par value bond. If the futures price falls to $118,500, you will experience a ______ loss on your money invested. Multiple Choice 7.00% 16.54% 27.54% 39.54%
Business
1 answer:
Annette [7]4 years ago
6 0

Answer:

16.54%

Explanation:

Margin = Future price × Initial margin requirement = $121,309 × 14% = $16,983.26  

Loss amount = $118,500 - $121,309  = - $2,809  

Loss percentage = $2,809/$16,983.26 = 0.1654, or 16.54%

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When Jill was asked, she chose cars over stomach cancer as the cause of more U.S. deaths per year. When asked why she chose the
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3 years ago
Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from cus
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Net Income for the year            234.500

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Total Income                  442.000  

   

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3 years ago
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