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3. Last year you took a long position on Citibank stock (C) future with maturity date...

3. Last year you took a long position on Citibank stock (C) future with maturity date April 2020 at a price of $34.8/share (100 shares per contract). The initial margin requirement is 12%. On the future contract maturity date, Citibank stock price rises to $44.5/share. What is the stock future price on maturity date? What is the return rate of your investment (Hint: how much is your investment)?

4. Assume a future contract on Treasury Bonds with a face value of $100,000 is purchased at 93. How many T-bonds will be delivered under the contract (what is T-bond face value)? If the same future contract is later sold at 94.56, what is the profit/loss from the price movement? If initial margin is 10%, what is the return rate of the investment?

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jeff jeffy answered 1 year ago
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