An Investor Bought a March S&P 500 Index Futures Contract

question 42

Multiple Choice

An investor bought a March S&P 500 Index futures contract in December for $1,490.05. After six months the contract value went up to $1,539.95. The contract has a multiplier of 250. With an initial margin of $20,000, what is the annualized percent return on margin?

• A)25.28%
• B)29.8%
• C)30.8%
• D)120.64%
• E)124.76%

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Definitions:

Increased Competition

A market condition where there is a rise in the number of competitors offering similar products or services, which can lead to price reductions and innovation.

Immediate Stressors

Events or situations that cause stress and are directly affecting an individual in the present moment.

Anomie

A societal condition marked by a breakdown of social norms, leading to individual uncertainty and alienation.

Postvention

Activities and support provided after a traumatic event, particularly after a suicide, aimed at helping those affected to cope and heal.