Walmart has taken a yen futures position to hedge a 125 million yen account payable at a yen futures price of 0.009483 $/yen. As you know, yen futures are quoted to six decimal places, and each yen futures contract is for 12.5 million yen. How much does Walmart make or lose on their futures position in $ for each point the yen futures price increases?
Walmart has taken a yen futures position to hedge a 125 million yen account payable at a yen futures price of 0.009483 $/yen. As you know, yen futures are quoted to six decimal places, and each yen futures contract is for 12.5 million yen. How much does Walmart make or lose on their futures position in $ for each point the yen futures price increases?
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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Walmart has taken a yen futures position to hedge a 125 million yen account payable at a yen futures price of 0.009483 $/yen. As you know, yen futures are quoted to six decimal places, and each yen futures contract is for 12.5 million yen. How much does Walmart make or lose on their futures position in $ for each point the yen futures price increases?
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