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

question 26

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 percent return on margin?

• A)62.38%
• B)60.32%
• C)7.70%
• D)7.45%
• E)6.32%

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