Exhibit 20.1 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 101

Multiple Choice

Exhibit 20.1
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
December futures on the S&P 500 stock index trade at 250 times the index value of 1187.70. Your broker requires an initial margin of 10% percent on futures contracts. The current value of the S&P 500 stock index is 1178.
-Refer to Exhibit 20.1. Suppose at expiration the futures contract price is 250 times the index value of 1170. Disregarding transaction costs, what is your percentage return?

• A)1.87%
• B)-0.68%
• C)-14.90%
• D)10.36%
• E)None of the above

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Definitions:

Romance Of Leadership

Involves people attributing romantic, almost magical, qualities to leadership.

Followers

Individuals who support and are guided by a leader or leadership within an organizational context, contributing to the group's objectives.

Constructive Follower Orientation

An approach where followers actively contribute ideas, engage in problem-solving, and support leadership initiatives for improved organizational outcomes.

Power

The ability or capacity to influence or direct the behavior of others or the course of events.