CVS Health has taken a yen future position to hedge a 125 million yen account payable at a yen futures price of 0.00928$/yen. As you know, yen futures are quoted to six decimal places, and each yen futures contract is for 12.5 million yen. How much does CVS Health make or lose on their futures position in $ for each point the yen futures price increase?

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To calculate how much CVS Health would make or lose on their futures position in dollars for each po... View the full answer