You expect the stock market to increase, but instead of acquiring stock, you decide to acquire a stock index futures contract. That index is currently 58.0, and the contract has a value that is $600 times the amount of the index. The margin requirement is
$3,000.
a. When you make the contract, how much must you put up? Round your answer to the nearest dollar.
$
b. What is the value of the contract based on the index? Round your answer to the nearest dollar.
$
c. If the value of the index rises 2 percent to 59.160, what is the profit on the investment? Round your answer to the nearest cent.
$
What is the percentage earned on the funds you put up? Round your answer to one decimal place.
%
d. If the value of the index declines 2 percent to 56.840, what percentage of your funds will you lose? Round your answer to one decimal place. Enter your answer as a positive value.
%
e. What is the percentage you earn (or lose) if the index falls to 53.0? Round your answer to one decimal place. Enter your answer as a positive value.
The percentage -Select- is
%.