A futures contract on the 3-month SOFR rate with notional principal of $1 million currently has a futures price of 99.70. If the (annualized) SOFR rate at contract maturity is .50%, what is the profit (positive number) or loss (negative number) realized by the trader on the long side of the contract? (The trader buys one contract.)

Answer rating: 100% (QA)

To calculate the profit or loss realized by the trader on the long side of the f... View the full answer