The multiplier for a futures contract on the stock-market indexis $250. The maturity of the contract

The multiplier for a futures contract on the stock-market indexis $250. The maturity of the contract is one year, the currentlevel of the index is 800, and the risk-free interest rate is 0.5%per month. The dividend yield on the index is 0.3% per month.Suppose that after one month, the stock index is at 820.
a. Find the cash flow from the mark-to-marketproceeds on the contract. Assume that the parity condition alwaysholds exactly.
(Do not round intermediate calculations.Round your answer to 2 decimal places.) Cash flow           $
b. Find the one-month holding-period return ifthe initial margin on the contract is $10,000.
(Do notround intermediate calculations. Round your answer to 2 decimalplaces.) Holding-period return            % . . .

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