(mark-to-market) You enter a short position in a € future contract with the size of €125,000 today. The futures expire in 90 days. The interest rates are i$=5.9% and ic=6.1%. The current spot rate is $1.38/€. Assume 360 days a year. If the spot rate is $1.37 € the next day and interest rates remain the same, your profit or loss for this day is $___________________ (Keep the sign and two decimal places.)
(mark-to-market) You enter a short position in a € future contract with the size of €125,000 today. The futures expire in 90 days. The interest rates are i$=5.9% and ic=6.1%. The current spot rate is $1.38/€. Assume 360 days a year. If the spot rate is $1.37 € the next day and interest rates remain the same, your profit or loss for this day is $___________________ (Keep the sign and two decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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(mark-to-market) You enter a short position in a € future contract with the size
of €125,000 today. The futures expire in 90 days. The interest rates are
i$=5.9% and iç=6.1%. The current spot rate is $1.38/€. Assume 360 days a year.
If the spot rate is $1.37/€ the next day and interest rates remain the same, your
profit or loss for this day is $
___. (Keep the sign and two decimal
places.)
1,250
1,248.46 margin of error +/- 0.05
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