Q7. Which of these is an incorrect statement about a (STG) CME Sterling Exchange contract with a face value of £62, 500 (sterling). A B C D The price quotation is the price of £62 500 in $ per £. When the price rises by 1 tick (0.01c) the value of the contact rises by $6.25. The long delivers $62,500 to the short at expiry. Both the long and short make an initial margin paymen at the opening.
Q7. Which of these is an incorrect statement about a (STG) CME Sterling Exchange contract with a face value of £62, 500 (sterling). A B C D The price quotation is the price of £62 500 in $ per £. When the price rises by 1 tick (0.01c) the value of the contact rises by $6.25. The long delivers $62,500 to the short at expiry. Both the long and short make an initial margin paymen at the opening.
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
Related questions
Question
7) This is an exercise about financial futures. Can you please check the picture and answer the question? Only one option is right (A, B, C, or D).
Transcribed Image Text:Q7. Which of these is an incorrect statement about a
(STG) CME Sterling Exchange contract with a
face value of £62, 500 (sterling).
A
B
C
D
The price quotation is the price of £62 500 in $ per £.
When the price rises by 1 tick (0.01c) the value of the
contact rises by $6.25.
The long delivers $62,500 to the short at expiry.
Both the long and short make an initial margin payment
at the opening.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education