You take a short position on a forward contract on EUR 12,000,000 at the rate F(USD/EUR)...

  

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You take a short position on a forward contract on EUR 12,000,000 at the rate F(USD/EUR) = 1.11. The initial performance bond is $1,000,000 while the maintenance performance bond is $900,000. Fill out the table below and compute the total gain/loss using the three methods. t S($/) 0 1 1.1055 $ 2 1.1171 $ GAIN / LOSS $ BALANCE ADDITION $ $ $ $ $ $ $ 3 1.1198 $ $ $ $ TOT BALANCE You take a short position on a forward contract on EUR 12,000,000 at the rate F(USD/EUR) = 1.11. The initial performance bond is $1,000,000 while the maintenance performance bond is $900,000. Fill out the table below and compute the total gain/loss using the three methods. t S($/) 0 1 1.1055 $ 2 1.1171 $ GAIN / LOSS $ BALANCE ADDITION $ $ $ $ $ $ $ 3 1.1198 $ $ $ $ TOT BALANCE

Answer rating: 100% (QA)

t S GAINLOSS BALANCE ADDITION TOT BALANCE 0 111 0 10000... View the full answer