A speculator enters a futures contract for September 19th delivery on February 2nd. The contract is for ₤62,500. The futures exchange rate is $1.65 per pound. He believes that the spot rate for pounds on September 19th will be $1.70 per pound. The initial performance bond (margin) is 2% of the contract value. If his expectations are correct, what would be his rate of return on investment? 

(Enter in percentage terms, for instance, enter 5 for 5% or -5 for -5%)

Answer rating: 100% (QA)

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