You are bullish on SA equities and have decided to enter into a long position in a JSE Top 40 futures contract. At the time you entered into your long Top 40 futures, the contract price was 61 428. Your broker required an initial margin of 15% percent on futures contracts. Suppose 3-months later, at expiration the JSE Top 40 contract reaches 65 125. 

Ignoring transactions costs, what is your percentage return? Note that the JSE Top 40 futures contract has multiplier of 10x.

Answer rating: 100% (QA)

To calculate your percentage return you first need to determine the profit you ... View the full answer