Exhibit 20.1 Use the Information Below for the Following Problem(S)

question 89

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:

Weak Relationships

Connections between entities that are characterized by low levels of interaction, commitment, or intensity.

Creativity

The ability to generate new ideas, solutions, or approaches that are original, valuable, and useful in a specific context.

Ties

Connections or relationships between individuals or entities that can influence social, professional, or organizational dynamics.

Advanced Cognitive Skills

Higher-level mental abilities, including problem-solving, decision-making, critical thinking, and creativity, that facilitate complex understanding and learning.