How much is transaction cost per typical share controlled

Reference no: EM133664155

Problem

I. If each E-mini futures contract (with a contract multiplier of $50) costs $27 to trade with a discount broker, how much is the transaction cost per dollar of stock controlled by the futures contract?

II. If the average price of a share on the NYSE is about $42, how much is the transaction cost per "typical share" controlled by one futures contract?

III. For small investors, a typical transaction cost per share in stocks directly is about 17 cents per share. How many times the transactions costs in futures markets is this?

Reference no: EM133664155

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