Assume the Initial Margin on a Swiss Franc Futures Contract

question 45

Multiple Choice

Assume the initial margin on a Swiss franc futures contract is $2,000. If an individual purchases a contract at $0.78 per franc and the contract involves 125,000 Swiss francs, what return on invested capital will the investor receive if the price per franc moves to $0.80?

• A) 3%
• B) 50%
• C) 100%
• D) 125%

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Definitions:

Observational Study

A research method where the researcher observes ongoing behavior without intervening directly with the subjects.

Systematically Recording

The process of consistently and methodically documenting information or data according to a predetermined system.

Nursery School

An educational institution for children too young for elementary school, typically from ages three to five, focusing on play and learning activities.

Case Studies

Research method that involves the detailed examination of a single subject or situation to explore its dynamics and draw conclusions.