(mark-to-market) 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 is=2.6% and ic=5.5%. The current spot rate is $1.38/€. Assume 360 days a year. If the spot rate is $1.36/€ the next day and interest rates remain the same, your profit or loss for this day is $.__.___. ____. (Keep the sign and two decimal places.) -2,500 -2,468.79 margin of error +/-0.02
(mark-to-market) 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 is=2.6% and ic=5.5%. The current spot rate is $1.38/€. Assume 360 days a year. If the spot rate is $1.36/€ the next day and interest rates remain the same, your profit or loss for this day is $.__.___. ____. (Keep the sign and two decimal places.) -2,500 -2,468.79 margin of error +/-0.02
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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(mark-to-market) 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
is=2.6% and ic=5.5%. The current spot rate is $1.38/€. Assume 360 days a year.
If the spot rate is $1.36/€ the next day and interest rates remain the same, your
profit or loss for this day is $
___. (Keep the sign and two decimal
places.)
-2,500
-2,468.79 margin of error +/- 0.02](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6491b3e0-e649-4c41-a513-7f4c6cd4e4be%2F2a90b73b-3fb3-4495-a8bf-5a57f1d04fb7%2Firo1e78_processed.png&w=3840&q=75)
Transcribed Image Text:You Answered
Correct Answer
(mark-to-market) 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
is=2.6% and ic=5.5%. The current spot rate is $1.38/€. Assume 360 days a year.
If the spot rate is $1.36/€ the next day and interest rates remain the same, your
profit or loss for this day is $
___. (Keep the sign and two decimal
places.)
-2,500
-2,468.79 margin of error +/- 0.02
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