OneChicago has just introduced a single-stock futures contract on Brandex stock, a company that currently pays no
Question:
a. If Brandex stock now sells at $120 per share, what should the futures price be?
b. If the Brandex price drops by 3%, what will be the change in the futures price and the change in the investor’s margin account?
c. If the margin on the contract is $12,000, what is the percentage return on the investor’s position?
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