Based on the information in Table 16–1 on page 417, what is the total value of an S&P 500 Index futures contract for December 2010? Use the settle price and the appropriate multiplier. Also, if the required margin is $28,125, what percent of the contract value does margin represent?
Answer to relevant QuestionsUsing data from Table 16–5 on page 426, assume you purchase a December 1100 (strike price) S&P 500 put option. Compute your total dollar profit or loss if the index has the following values at expiration: a. 1260 b. ...Return to problem 1 and assume that margin must be maintained at a minimum level of $22,500. If the S&P Index futures contract goes from its initial value down to $1,051.80, will there be a call for more margin? In terms of the capital asset pricing model: a. Indicate the two types of risks associated with an individual security. b. Which of these two is the beta risk? c. What risk is assumed not to be compensated for in the ...Using the formulas in Appendix 17B, compute a least squares regression equation for problem 12. (Round beta and alpha to two places after the decimal point.) Recompute the answer to problem 8 based on a portfolio standard of 16 percent. In terms of capital market theory, explain why KP has increased.
Post your question