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Assume the Initial Margin on a Swiss Franc Futures Contract

Question 45

Multiple Choice

Assume the initial margin on a Swiss franc futures contract is $2,000. If an individual purchases a contract at $0.78 per franc and the contract involves 125,000 Swiss francs, what return on invested capital will the investor receive if the price per franc moves to $0.80?


A) 3%
B) 50%
C) 100%
D) 125%

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