One Chicago has just introduced a new single stock futures contract on the stock of Brandex, a company that currently pays no dividends. Each contract calls for delivery of 1,500 shares of stock in one year. The T-bill rate is 4% per year.
a. If Brandex stock now sells at $210 per share, what should the futures price be? (Round your answer to 2 decimal places.)
b. If the Brandex stock price drops by 1.0%, what will be the change in the futures price and the change in the investor's margin account? (Input all amounts as positive values. Do not round intermediate calculations. Round your answers to 2 decimal places.)