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Suppose on Monday June 1, I long and you short the futures contract on 1,000,000 Canadian Dollars for December delivery.

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Suppose on Monday June 1, I long and you short the futures contract on 1,000,000 Canadian Dollars for December delivery. We enter the positions when the exchange rate is $0.75 US/CAD. We are required to post margins equal to 10% of the contract amount. On Tuesday June 2, the December contract settles at $0.74. Between Monday and Tuesday, your account will be market-to-market by what amount?

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To calculate the market to market MTM change in your account between Monday and Tuesday you ll need View the full answer


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Related Book For  answer-question
Introduction To Corporate Finance

Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

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Posted Date: September 08, 2023 04:05:33
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