Exhibit 13-1 USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 127

Multiple Choice

Exhibit 13-1
USE THE FOLLOWING INFORMATION FOR THE NEXT 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% on futures contracts. The current value of the S&P 500 stock index is 1178.
-Refer to Exhibit 13-1. 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:

Interrupted Time Series Design

A quasi-experimental design in which observations are made over time both before and after an intervention.

Quasi-experimental Design

An empirical study used to estimate the causal impact of an intervention, lacking random assignment.

Hamburgers Sold

A numerical measure representing the quantity of hamburgers sold within a specific time frame, often used in business and marketing research.

Sequential Method

A combination of the cross-sectional and longitudinal design to study developmental research questions.