Problem

17. You buy a futures contract on the S&P 500. Is the correlation with the S&P 500...

17. You buy a futures contract on the S&P 500. Is the correlation with the S&P 500 index positive or negative? If the nominal value of the contract is $100,000 and you are required to post $10,000 as margin, how much leverage do you have?

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Solutions For Problems in Chapter 1