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An Investor Bought a March S&P 500 Index Futures Contract

Question 42

Multiple Choice

An investor bought a March S&P 500 Index futures contract in December for $1,490.05. After six months the contract value went up to $1,539.95. The contract has a multiplier of 250. With an initial margin of $20,000, what is the annualized percent return on margin?


A) 25.28%
B) 29.8%
C) 30.8%
D) 120.64%
E) 124.76%

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