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Find the rate of return

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You buy ten (5) S&P500 index December futures contracts. Currently, S&P500 futures price is $2,000. The contract size is 250 and initial margin requirement is 26%. 

A month later, futures price increases 4% increase. Find the rate of return. (Report in percentage such as 25 instead of 0.25.) (margin for error: +/- 1%).

Reference no: EM131434853

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