Total value of the purchase price as margin or equity

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Reference no: EM131814091

A speculator, expecting the Mexican Peso to appreciate in the near future, bought five September, 2017 Mexican futures Contracts at a price of $0.05573 per peso; about 30-days later, he closed out his long position by selling the peso at $0.05782 per peso. There are 500,000 pesos in each Mexican futures contract. The speculator put up 4% of the total value of the purchase price as margin or equity. Please calculate the total $ profits or loss, and the % rate of return on equity.

Reference no: EM131814091

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