Refer to the Mini-S&P contract in Figure 22.1. Assume the closing price for this day. a....

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Refer to the Mini-S&P contract in Figure 22.1. Assume the closing price for this day. a. If the margin requirement is 11% of the futures price times the contract multiplier of $50, how much must you deposit with your broker to trade the March maturity contract? (Round your answer to the nearest whole dollar.) Required margin deposit b. If the March futures price increases to 2598.00, what percentage return will you earn on your investment if you entered the long side of the contract at the price shown in the figure? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Percentage return on net investment % c. If the March futures price falls by 1%, what is your percentage return? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Percentage return on net investment % 8 Futures Contracts | WSJ.com/commodities Metal & Petroleum Futures Contract Open High ti lo low Settle Chg Contract Open Open High hi lo low Settle Chg interest Open interest Copper-High (CMX)-25,000 lbs.; $per lb. Jan 2.6445 2.6460 2.6410 March 2.6500 2.6595 2.6315 2.6410 -0.0105 2.6370-0.0105 1,756 138,638 Gold (CMX-100 troy oz.: $ per troy oz. Jan 1284.90 1286.80 4.10 353 Coffee (ICE-US)-37,500 lbs; cents per lb. March 101.50 103.45 101.15 102.75 May 104.40 106.55 104.30 105.75 Sugar-World (ICE-US)-112,000 lbs; cents per lb. March 11.95 12.67 11.94 12.65 May 12.04 12.73 A 12.03 12.72 Sugar-Domestic ICE-US) 112,000 Bs., cents per lb. March 25.40 25.40 25.34 1.15 127.138 1.10 60,630 .72 380,965 .70 188,201 25.40 .04 2,718 Feb 1287.00 1297.00 1284.10 1209.90 4.10 302,111 May 25.50 25.54 25.50 25.50 -.01 2,455 June 1298.90 1309.00 1298.50 1302.90 4.20 43,689 Aug 1310.00 1315.10 1307.80 1309.00 4.10 10,837 Dec 1317.50 1326.80 Feb 20 1327.90 1331.00 1327.30 1327.70 Palladium (NYM)-50 troy oz; $ per troy oz. March 1242.40 1249.40 1230.80 1240.20 June 1226.20 1231.90 1216.10 1224.30 Platinum (NYM)-50 troy oz; $ per troy oz. 1317.00 1321.50 4.10 9,830 4.20 3,090 Jan 5.80 4.70 24,797 3,313 Jan April 824.20 825.40 821.00 818.40 827.20 83650 823.30 -3.60 824.30 -2.90 261 85,951 Silver (CMX) 5,000 troy or; $per tray oz. Jan 15.750 15.750 15.750 15.669 -0.026 March 15.800 15.880 15.680 15.756 -0.030 820 142,916 Crude Oil, Light Sweet (NYM-1,000 bbls.: $ per bbl Feb 48.22 49.79 18.11 48.52 March 48.49 50.1148.44 48.82 April 48.85 50.47 48.80 49.17 May 49.32 50.90 49.32 49.60 June 49.79 51.33 49.72 50.04 Dec 51.32 52.77 51.30 51.48 0.56 357,400 0.54 319,791 0.52 136.259 0.50 115,849 0.48 229,259 0.40 191,908 Feb Feb NY Harbor ULSD (NYM)-42,000 gal: $ per gal. 1.7775 1.8245 1.7764 1.7784 March 1.7691 1.8160 1.7690 1.7714 Gasoline-NY RBOB (NYM)-42,000 gal.: $ per gal. Feb 1.3585 1.3945 1.3389 1.3408-0070 March 1.3716 1.4080 1.3524 1.3541 -0077 Natural Gas (NYM)-10,000 MMBtu. S per MMBtu. 2.932 2.994 March 2.812 2.886 0092 0104 109,341 73,598 120,856 88,591 Jan 2.910 2.944 2.793 -100 2.847 -.058 April May 2.650 2.708 2.637 2.687 2.640 2.625 July Oct 2.718 2.765 2.708 2.710 2.761 2.698 Agriculture Futures Com (CBT)-5,000 bu; cents per bu. March 382.25 384.00 A 381.75 July 397.50 399.00 397.00 Oats (CBT)-5,000 bu; cents per bu March 279.50 280.25 276.50 May 279.50 279.50 274.00 Soybeans (CBT) 5,000 bu; cents per bu. 909.50 915.75 909.50 Jan March 921.00 927.75 920.75 Soybean Meal (CBT)-100 tons; $perton. Jan 316.00 319.30 A 316.00 2.677 -.011 2.662 -.002 2.746 -007 2.751 -.016 174,258 270,970 148,613 June 132,474 62,540 105,445 97.3060 97.3450 97.2900 Dec 97.3650 97.4100 97.3250 Cotton (ICE-US-50,000 lbs cents per lb. March 72.52 73.92 72.48 May 73.99 75.23 73.92 74.10 Orange Juice (ICE-US-15,000 lbs; cents per lb. 121.20 122.00 121.15 121.95 March 12375 124.80 12285 123.85 Interest Rate Futures Treasury Bonds (CBT) $100,000; pts 32nds of 100% March 146-230 147-170 146-040 146-160 -12.0 June 146-160 146-190 145-300 145-270 -13.0 Treasury Notes (CBT)$100,000; pts 32nds of 100% March 122-060 122-150 121-290 122-015 -8.0 4,102.583 June 122-150 122-240 122-065 122-105 -7.5 2.418 5 Yr. Treasury Notes (CBT)-$100,000 pts 32nds of 100% March 114-215 114-280 114-155 114-187 -5.5 4,580,715 2 Yr. Treasury Notes (CBT)-$200,000, pts 32nds of 100% March 106-045 106-065 106-010 106-025 -2.7 2,562,998 30 Day Federal Funds (CBT)-$5,000,000; 100-daily avg. Jan 97,600 97.600 97.598 97.598 -002 317,562 April 97.605 97.615 97.500 97,605 -.005 310,713 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% March 102.766 102.797 102.297 102.391 -219 27,938 1 Month Libor (CME) $3,000,000; pts of 100% Eurodollar (CME)-$1,000,000; pts of 100% Jen 97.2300 97.2375 97.2250 97.2300 March 97.2850 97.3150 97.2850 0050 268.303 97.3000 0050 1,429.121 97.3150 -1.252.674 97.3550-0250 1,740,407 72.75 23 126.870 .16 39,008 65 55 582 14,103 949,992 61 974875 .0075 535 Currency Futures Japanese Yen (CHE)-12,500,000 $ per 100 Jan .9220 .9257 .9211 9213 -0008 March .9272 9310 9247 .9259 -.0009 1,190 222.921 382.25 -75 397.50 -.75 751,642 242,635 Jan March Canadian Dollar (CME) CAD 100,000; $per CAD 7479 75307479 .7522 7484 .7544 .7484 0054 7533 0054 723 166,071 279.50 -50 276.00 -4.25 4,124 638 British Pound (CME)-E62,500; $ per E 912.25 924.25 2.75 2.75 3,422 337,373 318.20 3.10 March 319.40 323.30319.20 322.20 Soybean Oil (CBT)-60,000 lbs; cents per lb. 3.20 1,798 193,399 Jan 1.2747 12775 A 1.2729 1.2775 March 1.2780 1.2832 A 1.2764 1.2815 Swiss Franc (CME)-CHF 125,000; $per CHF March 1.0206 1.0285 10200 1.0277 June 1.0330 1.0369 1.0292 1.0368 0071 Australian Dollar (CME) AUD 100,000; $ per AUD .0031 2,616 .0031 204,679 0071 66.727 95 7148 7135 Jan March 28.47 28.55 28.25 28.25 28.70 28.80 28.47 -.15 28.51 -13 972 219,566 .7158.7122 7149 7144 Rough Rice (CBT)-2,000 cwt; $per cwt. March 1048.00 1069.00 1048.00 1066.50 18.50 May 1071.50 1083.50 A1071.50 Wheat (CBT)-5,000 bu; cents per bu. March 518.00 518.50 513.50 July 530.50 530.50 525.50 Wheat (KC)-5,000 bu; cents per bu. March 506.25 507.25 500.50 May 517.50 518.75 512.00 Wheat (MPLS)-5,000 bu.; cents per bu. March 570.25 572.00 505.50 568.00 -2.25 May 575.50 577.25 570.75 573.25 -2.25 Cattle-Feeder (CME)-50,000 lbs; cents per lb. Jan 144.600 146.325 144.200 146.000 March 142.150 144.425 142.000 143.900 Cattle-Live (CME) 40,000 lbs; cents per b. June 7160 A 7133 Jan 7125 7150 7124 .7143 .0025 Feb .7135 March .7129 Apri .7144 .7133 331 7147 .0026 7150 .0025 680 124,074 7153 00026 253 7160 0007 661 7,164 Sept .7147 7161 7147 7169 0026 121 1082.50 18.50 102 Mexican Peso (CME)-MXN 500,000; $per MXN March .05107 05129 .05004 05113 00014 516.75 -25 527.00 -2.50 229,028 76,657 June .04890 04905 A .04887 05035 .00013 161,111 35 Euro (CME)-125,000; $per Jan 503.00 -3.00 514.50 -3.00 182,341 55,722 1.1415 1.1488 1.1415 1.1486 0079 March 1.1475 1.1551 1.1471 1.1547 0079 480.919 1,938 Index Futures 33,947 13,177 Mini DJ Industrial Average (CBT)-5x index March 23470 23668 23279 23512 117 Dec 23523 23686 23350 235.30 118 72,535 544 1.100 1,075 8,483 25,193 S&P 500 Index (CME)-5250 xnx March 2536.70 2557.00 A2525.00 Mini S&P 500 (CME)-550x index 2550.60 19.30 39,216 Feb 121.800 123.400 121.425 123.200 1.275 April 123.850 125.375 123.500 125.075 1.075 Hogs-Lean (CME) 40,000 lbs.; cents per lb. 179,414 115,863 Feb 61.950 62.15061.250 61.900 Jan April 56.700 66.900 65.825 66.375 Lumber (CME)-110,000 bdt; $per 1,000 bd.ft. 326.20 326.20 323.00 324.80 March 332.20 333.00 328.00 330.00 -.050 -.375 79,843 60,839 March 2537.25 2567.50 2523.25 2550.50 June 2540.25 2571.25 2528.50 2555.00 Mini S&P Midcap 400 (CME) $100 x index March 1690.00 1717.10 1679.20 1703.30 Mini Nasdaq 100 (CME) $20 x index 19.20 2.634.252 19.40 27,554 17.70 68.276 March 6451.3 6535.8 A 64025 1.20 .90 398 2,724 June 6471.5 6557.0 6427.0 6496.5 62.5 6520.8 63.8 196,948 1,350 Mini Russell 2000 (CME)-550 x index Milk (CME)-200,000 lbs; cents per lb. Jan 14.16 14.26 14.12 Feb May 14.72 14.73 14.55 Cocoa (ICE-US)-10 metric tons; $per ton. March 2,362 2,413 2,356 2,396 2,449 14.14 -.11 14.57 -17 4,391 4,095 March 138440 1414.60 1375.80 1405.90 June 1391.60 1417.90 1386.80 1410.50 25.00 24.30 165,350 534 Mini Russell 1000 (CME)-$50 x index March 1402.00 1418.90 1402.00 1409.80 10.70 7,564 2,410 49 96,443 U.S. Dollar Index (ICE-US)-$1,000 x index 2,394 2,447 49 51,009 March 95.71 June 95.00 95.73 95.20 95.23 -52 95.08 94.75 94.74 -.51 57,402 945 Figure 22.1 Futures listings Source: The Wall Street Journal, July 6, 2016 Refer to the Mini-S&P contract in Figure 22.1. Assume the closing price for this day. a. If the margin requirement is 11% of the futures price times the contract multiplier of $50, how much must you deposit with your broker to trade the March maturity contract? (Round your answer to the nearest whole dollar.) Required margin deposit b. If the March futures price increases to 2598.00, what percentage return will you earn on your investment if you entered the long side of the contract at the price shown in the figure? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Percentage return on net investment % c. If the March futures price falls by 1%, what is your percentage return? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Percentage return on net investment % 8 Futures Contracts | WSJ.com/commodities Metal & Petroleum Futures Contract Open High ti lo low Settle Chg Contract Open Open High hi lo low Settle Chg interest Open interest Copper-High (CMX)-25,000 lbs.; $per lb. Jan 2.6445 2.6460 2.6410 March 2.6500 2.6595 2.6315 2.6410 -0.0105 2.6370-0.0105 1,756 138,638 Gold (CMX-100 troy oz.: $ per troy oz. Jan 1284.90 1286.80 4.10 353 Coffee (ICE-US)-37,500 lbs; cents per lb. March 101.50 103.45 101.15 102.75 May 104.40 106.55 104.30 105.75 Sugar-World (ICE-US)-112,000 lbs; cents per lb. March 11.95 12.67 11.94 12.65 May 12.04 12.73 A 12.03 12.72 Sugar-Domestic ICE-US) 112,000 Bs., cents per lb. March 25.40 25.40 25.34 1.15 127.138 1.10 60,630 .72 380,965 .70 188,201 25.40 .04 2,718 Feb 1287.00 1297.00 1284.10 1209.90 4.10 302,111 May 25.50 25.54 25.50 25.50 -.01 2,455 June 1298.90 1309.00 1298.50 1302.90 4.20 43,689 Aug 1310.00 1315.10 1307.80 1309.00 4.10 10,837 Dec 1317.50 1326.80 Feb 20 1327.90 1331.00 1327.30 1327.70 Palladium (NYM)-50 troy oz; $ per troy oz. March 1242.40 1249.40 1230.80 1240.20 June 1226.20 1231.90 1216.10 1224.30 Platinum (NYM)-50 troy oz; $ per troy oz. 1317.00 1321.50 4.10 9,830 4.20 3,090 Jan 5.80 4.70 24,797 3,313 Jan April 824.20 825.40 821.00 818.40 827.20 83650 823.30 -3.60 824.30 -2.90 261 85,951 Silver (CMX) 5,000 troy or; $per tray oz. Jan 15.750 15.750 15.750 15.669 -0.026 March 15.800 15.880 15.680 15.756 -0.030 820 142,916 Crude Oil, Light Sweet (NYM-1,000 bbls.: $ per bbl Feb 48.22 49.79 18.11 48.52 March 48.49 50.1148.44 48.82 April 48.85 50.47 48.80 49.17 May 49.32 50.90 49.32 49.60 June 49.79 51.33 49.72 50.04 Dec 51.32 52.77 51.30 51.48 0.56 357,400 0.54 319,791 0.52 136.259 0.50 115,849 0.48 229,259 0.40 191,908 Feb Feb NY Harbor ULSD (NYM)-42,000 gal: $ per gal. 1.7775 1.8245 1.7764 1.7784 March 1.7691 1.8160 1.7690 1.7714 Gasoline-NY RBOB (NYM)-42,000 gal.: $ per gal. Feb 1.3585 1.3945 1.3389 1.3408-0070 March 1.3716 1.4080 1.3524 1.3541 -0077 Natural Gas (NYM)-10,000 MMBtu. S per MMBtu. 2.932 2.994 March 2.812 2.886 0092 0104 109,341 73,598 120,856 88,591 Jan 2.910 2.944 2.793 -100 2.847 -.058 April May 2.650 2.708 2.637 2.687 2.640 2.625 July Oct 2.718 2.765 2.708 2.710 2.761 2.698 Agriculture Futures Com (CBT)-5,000 bu; cents per bu. March 382.25 384.00 A 381.75 July 397.50 399.00 397.00 Oats (CBT)-5,000 bu; cents per bu March 279.50 280.25 276.50 May 279.50 279.50 274.00 Soybeans (CBT) 5,000 bu; cents per bu. 909.50 915.75 909.50 Jan March 921.00 927.75 920.75 Soybean Meal (CBT)-100 tons; $perton. Jan 316.00 319.30 A 316.00 2.677 -.011 2.662 -.002 2.746 -007 2.751 -.016 174,258 270,970 148,613 June 132,474 62,540 105,445 97.3060 97.3450 97.2900 Dec 97.3650 97.4100 97.3250 Cotton (ICE-US-50,000 lbs cents per lb. March 72.52 73.92 72.48 May 73.99 75.23 73.92 74.10 Orange Juice (ICE-US-15,000 lbs; cents per lb. 121.20 122.00 121.15 121.95 March 12375 124.80 12285 123.85 Interest Rate Futures Treasury Bonds (CBT) $100,000; pts 32nds of 100% March 146-230 147-170 146-040 146-160 -12.0 June 146-160 146-190 145-300 145-270 -13.0 Treasury Notes (CBT)$100,000; pts 32nds of 100% March 122-060 122-150 121-290 122-015 -8.0 4,102.583 June 122-150 122-240 122-065 122-105 -7.5 2.418 5 Yr. Treasury Notes (CBT)-$100,000 pts 32nds of 100% March 114-215 114-280 114-155 114-187 -5.5 4,580,715 2 Yr. Treasury Notes (CBT)-$200,000, pts 32nds of 100% March 106-045 106-065 106-010 106-025 -2.7 2,562,998 30 Day Federal Funds (CBT)-$5,000,000; 100-daily avg. Jan 97,600 97.600 97.598 97.598 -002 317,562 April 97.605 97.615 97.500 97,605 -.005 310,713 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% March 102.766 102.797 102.297 102.391 -219 27,938 1 Month Libor (CME) $3,000,000; pts of 100% Eurodollar (CME)-$1,000,000; pts of 100% Jen 97.2300 97.2375 97.2250 97.2300 March 97.2850 97.3150 97.2850 0050 268.303 97.3000 0050 1,429.121 97.3150 -1.252.674 97.3550-0250 1,740,407 72.75 23 126.870 .16 39,008 65 55 582 14,103 949,992 61 974875 .0075 535 Currency Futures Japanese Yen (CHE)-12,500,000 $ per 100 Jan .9220 .9257 .9211 9213 -0008 March .9272 9310 9247 .9259 -.0009 1,190 222.921 382.25 -75 397.50 -.75 751,642 242,635 Jan March Canadian Dollar (CME) CAD 100,000; $per CAD 7479 75307479 .7522 7484 .7544 .7484 0054 7533 0054 723 166,071 279.50 -50 276.00 -4.25 4,124 638 British Pound (CME)-E62,500; $ per E 912.25 924.25 2.75 2.75 3,422 337,373 318.20 3.10 March 319.40 323.30319.20 322.20 Soybean Oil (CBT)-60,000 lbs; cents per lb. 3.20 1,798 193,399 Jan 1.2747 12775 A 1.2729 1.2775 March 1.2780 1.2832 A 1.2764 1.2815 Swiss Franc (CME)-CHF 125,000; $per CHF March 1.0206 1.0285 10200 1.0277 June 1.0330 1.0369 1.0292 1.0368 0071 Australian Dollar (CME) AUD 100,000; $ per AUD .0031 2,616 .0031 204,679 0071 66.727 95 7148 7135 Jan March 28.47 28.55 28.25 28.25 28.70 28.80 28.47 -.15 28.51 -13 972 219,566 .7158.7122 7149 7144 Rough Rice (CBT)-2,000 cwt; $per cwt. March 1048.00 1069.00 1048.00 1066.50 18.50 May 1071.50 1083.50 A1071.50 Wheat (CBT)-5,000 bu; cents per bu. March 518.00 518.50 513.50 July 530.50 530.50 525.50 Wheat (KC)-5,000 bu; cents per bu. March 506.25 507.25 500.50 May 517.50 518.75 512.00 Wheat (MPLS)-5,000 bu.; cents per bu. March 570.25 572.00 505.50 568.00 -2.25 May 575.50 577.25 570.75 573.25 -2.25 Cattle-Feeder (CME)-50,000 lbs; cents per lb. Jan 144.600 146.325 144.200 146.000 March 142.150 144.425 142.000 143.900 Cattle-Live (CME) 40,000 lbs; cents per b. June 7160 A 7133 Jan 7125 7150 7124 .7143 .0025 Feb .7135 March .7129 Apri .7144 .7133 331 7147 .0026 7150 .0025 680 124,074 7153 00026 253 7160 0007 661 7,164 Sept .7147 7161 7147 7169 0026 121 1082.50 18.50 102 Mexican Peso (CME)-MXN 500,000; $per MXN March .05107 05129 .05004 05113 00014 516.75 -25 527.00 -2.50 229,028 76,657 June .04890 04905 A .04887 05035 .00013 161,111 35 Euro (CME)-125,000; $per Jan 503.00 -3.00 514.50 -3.00 182,341 55,722 1.1415 1.1488 1.1415 1.1486 0079 March 1.1475 1.1551 1.1471 1.1547 0079 480.919 1,938 Index Futures 33,947 13,177 Mini DJ Industrial Average (CBT)-5x index March 23470 23668 23279 23512 117 Dec 23523 23686 23350 235.30 118 72,535 544 1.100 1,075 8,483 25,193 S&P 500 Index (CME)-5250 xnx March 2536.70 2557.00 A2525.00 Mini S&P 500 (CME)-550x index 2550.60 19.30 39,216 Feb 121.800 123.400 121.425 123.200 1.275 April 123.850 125.375 123.500 125.075 1.075 Hogs-Lean (CME) 40,000 lbs.; cents per lb. 179,414 115,863 Feb 61.950 62.15061.250 61.900 Jan April 56.700 66.900 65.825 66.375 Lumber (CME)-110,000 bdt; $per 1,000 bd.ft. 326.20 326.20 323.00 324.80 March 332.20 333.00 328.00 330.00 -.050 -.375 79,843 60,839 March 2537.25 2567.50 2523.25 2550.50 June 2540.25 2571.25 2528.50 2555.00 Mini S&P Midcap 400 (CME) $100 x index March 1690.00 1717.10 1679.20 1703.30 Mini Nasdaq 100 (CME) $20 x index 19.20 2.634.252 19.40 27,554 17.70 68.276 March 6451.3 6535.8 A 64025 1.20 .90 398 2,724 June 6471.5 6557.0 6427.0 6496.5 62.5 6520.8 63.8 196,948 1,350 Mini Russell 2000 (CME)-550 x index Milk (CME)-200,000 lbs; cents per lb. Jan 14.16 14.26 14.12 Feb May 14.72 14.73 14.55 Cocoa (ICE-US)-10 metric tons; $per ton. March 2,362 2,413 2,356 2,396 2,449 14.14 -.11 14.57 -17 4,391 4,095 March 138440 1414.60 1375.80 1405.90 June 1391.60 1417.90 1386.80 1410.50 25.00 24.30 165,350 534 Mini Russell 1000 (CME)-$50 x index March 1402.00 1418.90 1402.00 1409.80 10.70 7,564 2,410 49 96,443 U.S. Dollar Index (ICE-US)-$1,000 x index 2,394 2,447 49 51,009 March 95.71 June 95.00 95.73 95.20 95.23 -52 95.08 94.75 94.74 -.51 57,402 945 Figure 22.1 Futures listings Source: The Wall Street Journal, July 6, 2016