Suppose the initial margin requirement for the oil contract is 20%. Contract size is 1000 barrels. Current future price for march is $62.48. If the spot oil price at maturity date is 65.48, and you only invest on oil commodity and dont use future contract, whats your return if you buy the oil? A. $31.25 B. $32.37 C. $38.47 D. $41.32

Suppose the 6-month risk-free rate of return in the United States is 5%. The current exchange rate is 1 pound = US$2.05. The 6-month forward rate is 1 pound = US$2. The minimum yield on a 6-month risk-free security in Britain that would induce a U.S. investor to invest in the British security is ________.

	A.	5.06%
	B.	3.74%
	C.	9.48%
	D.	7.63%