On 16 March a US trader bought three Australian dollar futures contracts at 0.5200 (USD/AUD) when the spot exchange rate was 0.5000. On 14 July, the trader sold the three contracts at 0.5400 and bought the amount spot at 0.5250. (a) Calculate the value of the three contracts on 16 March. (b) Calculate the spot value of the Australian dollar amount equal to three contracts on 16 March. (c) Ignoring marking-to-market, calculate the net gain (loss) from the transactions conducted on 14 July
On 16 March a US trader bought three Australian dollar futures contracts at 0.5200 (USD/AUD) when the spot exchange rate was 0.5000. On 14 July, the trader sold the three contracts at 0.5400 and bought the amount spot at 0.5250. (a) Calculate the value of the three contracts on 16 March. (b) Calculate the spot value of the Australian dollar amount equal to three contracts on 16 March. (c) Ignoring marking-to-market, calculate the net gain (loss) from the transactions conducted on 14 July
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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On 16 March a US trader bought three Australian dollar futures contracts at 0.5200
(USD/AUD) when the spot exchange rate was 0.5000. On 14 July, the trader sold the
three contracts at 0.5400 and bought the amount spot at 0.5250.
(a) Calculate the value of the three contracts on 16 March.
(b) Calculate the spot value of the Australian dollar amount equal to three contracts on 16
March.
(c) Ignoring marking-to-market, calculate the net gain (loss) from the transactions
conducted on 14 July
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