In June 2022, Johnny Sprinter purchased one September Share Price Index (SPI) 200 futures contract. At the time the SPI
Posted: Fri Jul 01, 2022 7:36 am
In June 2022, Johnny Sprinter purchased one September SharePrice Index (SPI) 200 futures contract. At the time the SPI 200index was at 4939, and the interest rate was 12.7% pa. Mostfirms have been performing very well on a consistent basis over thelast few years, and so the dividend yield was expected to be quitehigh, around 8.1% pa. It is now September, and Septemberfutures are currently trading for 5156. Determine the profit orloss Johnny will make by closing out his position on the SeptemberFutures he purchased, assuming futures were priced fairly. Giveyour answer in dollars and cents to the nearest cent.