Calculate gary return on invested capital

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Gary thinks that the Australian economy will undergo a recession and interest rates will decline, and he decides to speculate in the futures market. He buys one 10 year government bond future (the underlying face value is A$100,000) at 97.65 with an initial margin of A$1,200. After one month, interest rates declined, and the futures price is now A$102.30. Calculate Gary's return on invested capital.

Reference no: EM132731554

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