USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 132

Multiple Choice

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 15.14. 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) 13.58%

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Definitions:

Contraceptive Techniques

Strategies or instruments employed to avoid pregnancy after engaging in sexual relations.

Biased

Possessing or showing an unfair tendency to believe that some people, ideas, etc., are better than others.

Clitoral Orgasm

An orgasm achieved by the stimulation of the clitoris, a sensitive erogenous zone on the female body.

Sigmund Freud

An Austrian neurologist who is known for founding psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.