Assume a company sold 5 Eurodollar contracts at a quoted price of $99.35 to hedge its...
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Assume a company sold 5 Eurodollar contracts at a quoted price of $99.35 to hedge its interest rate risk. When they bought the contract back to close out the position, the quoted price was $99.56. What total amount of money did the company make or lose on its hedge (each contract is on $2,500)? Assume a company sold 5 Eurodollar contracts at a quoted price of $99.35 to hedge its interest rate risk. When they bought the contract back to close out the position, the quoted price was $99.56. What total amount of money did the company make or lose on its hedge (each contract is on $2,500)?
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Each Eurodollar contract is on 2500 so selling 5 contracts would mean that the comp... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Posted Date:
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