Question: please answer as much as possible and I will give you a like!!! thankyou Question 4 (17 marks) a. A silver futures contract requires the

 please answer as much as possible and I will give you

please answer as much as possible and I will give you a like!!! thankyou

Question 4 (17 marks) a. A silver futures contract requires the seller to deliver 5,000 Troy ounces of silver. Andrew buys ten silver futures contracts at a price of $26 per ounce. The initial margin is $6,000 per contract and the maintenance margin is $2,500 per contract. What is the silver futures price per ounce at which Andrew would receive a margin call? (3 marks) b. Here are information from GX Management. ^ Stock A Stock B S&P 500 Risk-free rate Forecast return 9% 16% 12% 5% Standard deviation 27% 35% 20% Beta 0.85 1.23 1.00 i. Explain which stock, A or B, would be classified as defensive. (2 marks) ii. Calculate expected return and alpha for each stock, according to the capital asset pricing model. (8 marks) ini. Based on (ii), what is your investment recommendation for an investor with a well- diversified portfolio? (4 marks)

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