On Monday morning you sell one June T-bond futures contract at 97:27, that is, for $97,843.75. The contract's face value is $100,000. The initial margin requirement is $2,700, and the maintenance margin requirement is $2,000 per contract. Use the following price data to answer the following questions. The cumulative rate of return on your investment after Wednesday is a ________. Select one: A. 33% gain B. 53.9% loss C. 2.6% loss D. 79.9% loss

Respuesta :

Answer:

Rate of return on  investment = 79.87% Loss

Explanation:

Given:

Sale price = $97,843.75

Face value = $100,000

Initial margin = $2,700

Computation:

Loss on sale = Face value - Sale price

Loss on sale = $100,000 - $97,843.75

Loss on sale = $2,156.5

Computation:

Rate of return on  investment = ($2,156.5 / $2,700)100

Rate of return on  investment = 79.87% Loss