Given the information in the previous problem, what is the leverage factor associated with these contracts. If silver rises to $17 per ounce, what is your total percentage return?

Problem 17.6

You have decided to use futures contracts to invest in silver at a settle price of $15 per ounce. Each futures contract has a standard size of 5,000 troy ounces and an initial margin requirement of $4,500. If you purchase 25 contracts, what is the total margin (in dollars) you will need to provide?