Question: A speculator opens a long position in 4 0 three - month E - mini S&P 5 0 0 futures contracts at a futures price

A speculator opens a long position in 40 three-month E-mini S&P 500 futures contracts at a futures price of 4,178.50. The contemporaneous S&P 500 Index value is 4,122.40. a. What is the value of the margin the speculator posts? b. A few days later the futures price closes at 4,166.15; what is the value of the speculators margin account? c. If the speculator closes out the long position at a futures price of 4,159.20 what is the speculators total profit/loss and the return on the speculators investment?

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