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lapo4ka [179]
3 years ago
11

On Monday morning you sell one June T-bond futures contract at 97:27, that is, for $97,843.75. The contract's face value is $100

,000. The initial margin requirement is $2,700, and the maintenance margin requirement is $2,000 per contract. Use the following price data to answer the following questions. The cumulative rate of return on your investment after Wednesday is a ________. Select one: A. 33% gain B. 53.9% loss C. 2.6% loss D. 79.9% loss
Business
1 answer:
Natasha2012 [34]3 years ago
3 0

Answer:

Rate of return on  investment = 79.87% Loss

Explanation:

Given:

Sale price = $97,843.75

Face value = $100,000

Initial margin = $2,700

Computation:

Loss on sale = Face value - Sale price

Loss on sale = $100,000 - $97,843.75

Loss on sale = $2,156.5

Computation:

Rate of return on  investment = ($2,156.5 / $2,700)100

Rate of return on  investment = 79.87% Loss

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Answer:

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4 0
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