Business, 24.11.2020 22:10, paigejohnson6161
Suppose on Monday June 1, you long and I short the futures contract on 1000 units of commodity, for December delivery. We enter the positions when the futures price is $15 per unit. We are required to post margins equal to 12% of the contract amount. On Tuesday June 2, the December contract settles at $15.75. Between Monday and Tuesday, my return will be what percentage?
a. -4.2%
b. 50%
c. -42%
d. 5%
Answers: 2
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