OneChicago has just introduced a new single stock futures contract on the stock of Brandex, a company
Fantastic news! We've Found the answer you've been seeking!
Question:
OneChicago has just introduced a new single stock futures contract on the stock of Brandex, a company that currently pays no dividends. Each contract calls for delivery of shares of stock in one year. The Tbill rate is per year.
Required:
a If Brandex stock now sells at $ per share, what should the futures price beRound your answer to decimal places.
b Brandex stock now sells at $ per share. If the Brandex stock price drops by what will be the new futures price and the change in the investor's margin account? Input all amounts as positive values. Do not round intermediate calculations. Round your answers to decimal places.
c Brandex stock now sells at $ per share. If the margin on the contract is $ what is the percentage return on the investor's position, if the Brandex stock price drops by Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to decimal places.
Posted Date: