USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 25

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. How much must you deposit in a margin account if you wish to purchase one contract?

• A) $267,232.5
• B) $29,450
• C) $29,692.50
• D) $30,000
• E) $265,050

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Definitions:

Workers Without Jobs

Individuals who are actively seeking employment but are unable to find work.

Structural Unemployment

Unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one.

U-5 Measure

The U-5 Measure is a broader definition of unemployment than the standard, including not only those actively seeking work but also discouraged workers and others marginally attached to the labor force.

Marginally Attached Workers

Individuals who are not in the labor force but want and are available to work, and have looked for a job sometime in the past 12 months but not in the four weeks preceding the survey.