You enter a long position in a future contract with the size of 125,000 today. The...
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You enter a long position in a future contract with the size of 125,000 today. The futures expire in 90 days. The interest rates are i-5% and i=10.4%. The current spot rate is $1.38/. Assume 360 days a year. If the spot rate is $1.43/ the next day and interest rates remain the same, your profit or loss for this day is $ (Keep the sign and two decimal numbers.) You enter a long position in a future contract with the size of 125,000 today. The futures expire in 90 days. The interest rates are i-5% and i=10.4%. The current spot rate is $1.38/. Assume 360 days a year. If the spot rate is $1.43/ the next day and interest rates remain the same, your profit or loss for this day is $ (Keep the sign and two decimal numbers.)
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To calculate the profit or loss for the day we need to consider the change in the spot rate and the ... View the full answer
Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
Posted Date:
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