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%

---

Definitions:

Brand Relevant

The degree to which a brand is perceived as important and meaningful to its target audience's needs and preferences.

Brand Equity

The value that a brand adds to a product or service based on consumers' perceptions, recognition, and loyalty.

Line Extension

is a marketing strategy where a company introduces additional items in the same product category under the same brand name, often with new flavors, forms, colors, sizes, or other characteristics.

Brand Equity

is the value and strength a brand possesses, stemming from consumers' perceptions, recognition, and loyalty.