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

question 62

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. Calculate the return on a cash investment in the S&P 500 stock index if the ending index value is 1170 over the same time period.

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

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Definitions:

Temperature Sensitivity

The degree to which a substance or device is affected by changes in temperature.

Skin Receptors

Specialized cells or nerve endings located in the skin that respond to various stimuli, including touch, pressure, pain, and temperature, allowing for the sensation of touch and the perception of environmental changes.

Pacinian Corpuscles

Specialized nerve endings located in the skin and viscera that detect mechanical changes and vibrations, contributing to the sense of touch and proprioception.

Sense of Smell

The ability to detect and identify odors through the olfactory system, which involves olfactory neurons that are sensitive to volatile compounds in the air.