Question: George Seby is thinking about doing some speculating in interest rates. He thinks rates will fall and, in response, the price of Treasury bond futures

George Seby is thinking about doing some speculating in interest rates.

George Seby is thinking about doing some speculating in interest rates. He thinks rates will fall and, in response, the price of Treasury bond futures should move from 96-17.2, their present quote, to a level of about 106. Given a required margin deposit of $1,350 per contract, what would George's return on invested capital be if prices behave as he expects? If prices behave as he expects, George's return on invested capital will be (Round to two decimal places.)

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