Long Term Capital's core trades were so-called relative value trades. Imagine LTC had 11 million in investor capital for a trade, which they leveraged at 30 to 1. Now imagine they found a one year investment where they could earn 17 basis points. (100 basis points = .01 = 1%) How much money would they earn on this trade if it worked out as planned? Please answer to the nearest dollar without any currency symbols.

Answer rating: 100% (QA)

To calculate the earnings from this trade we can use the fo... View the full answer