Question

You enter a long position in a € future contract with the size of €125,000 today....

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 i$=2% and i€=4%. The current spot rate is $1.38/€. Assume 360 days a year. If the spot rate is $1.43/€ the next day and interest rates remain the same, How much is your profit or loss for this day?

Select one:

a. -$3974.78

b. $3974.78

c. $6228.80

d. $6250

e. -$6228.80

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
10)You enter a long position in a € future contract with the size of €125,000 today....
10)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 i$=2% and i€=4%. The current spot rate is $1.38/€. Assume 360 days a year. If the spot rate is $1.43/€ the next day and interest rates remain the same, How much is your profit or loss for this day? Select one: a. $6228.80 b. $3974.78 c. $6250 d. -$6228.80 e. -$3974.78 9) The interest...
10)You enter a long position in a € future contract with the size of €125,000 today....
10)You enter a long position in a € future contract with the size of €125,000 today. The futures expire in 90 days. The interest rates are i$=2% and i€=4%. The current spot rate is $1.38/€. Assume 360 days a year. If the spot rate is $1.43/€ the next day and interest rates remain the same, How much is your profit or loss for this day? Select one: a. $6228.80 b. $3974.78 c. $6250 d. -$6228.80 e. -$3974.78 12) National Bank...
a. Today, you are looking at a Euro Futures contract: Maturity: ​​​ Due on the 3rd...
a. Today, you are looking at a Euro Futures contract: Maturity: ​​​ Due on the 3rd Wednesday of September 2020 Size:​​​ €125,000​ Price of the futures today​ $1.12/€ If you believe the spot rate would be $1.15 in September 2020, then you should ____ (Buy or Sell) the futures. True or False _________: if you buy the futures today and do nothing until the maturity day, then you will need to buy €125,000 at $1.12/€ in September 2020. True or...
4. Suppose you enter into a CHF futures contract (contract size = 125,000 CHF) as the...
4. Suppose you enter into a CHF futures contract (contract size = 125,000 CHF) as the seller at the end of the day on day 0 at a closing futures price of 0.7335 USD/CHF. Futures prices then evolve as 0.7391 USD/CHF on day 1, 0.7388 USD/CHF on day 2, 0.7352 USD/CHF on day 3, and 0.7297 USD/CHF on day 4. What would your cash flows be at the end of every day? Your initial margin is $2000 and your maintenance...
1) The Mexican peso futures contract is trading at 0.07713 $/MXN.  Contract size for the Mexican peso...
1) The Mexican peso futures contract is trading at 0.07713 $/MXN.  Contract size for the Mexican peso future is 500,000 pesos.  You believe the spot price will be 0.08365 $/MXN at expiration.   What speculative position would you enter into to profit from your beliefs?  Calculate your anticipated profits assuming you take a position in three contracts.  What is the size of your profit or loss if the futures price is indeed an unbiased predictor of the future spot price and this price materializes? 2)...
You take a long position in one gold futures contract. The contract size is 100 ounces....
You take a long position in one gold futures contract. The contract size is 100 ounces. The initial margin requirement is $5,000. The current futures price is $1,200/ounce. At the end of the 1st day of trading, the futures price is $1,190/ounce. At the end of the 2nd day of trading, the futures price is $1,192/ounce. What is the trader's daily gain or loss on day 1? Group of answer choices
Assume today is the 4th May and you intend to issue a single 110 day bank...
Assume today is the 4th May and you intend to issue a single 110 day bank accepted bill on the 12th June. You decide to take a position in a bank bill futures contract to hedge the interest rate risk that you face between now and the 12th June. The table below provides the spot and futures prices of the underlying bank bills at both the 4th May and the 12th June. 4th May 12th June 90 day BAB spot...
Suppose you took a long position in 2 euro futures contracts at a price of $1.1235/€....
Suppose you took a long position in 2 euro futures contracts at a price of $1.1235/€. If the contract size is €125,000 and if you close out your position in 1 month at a price of $1.1186/€ what is your overall profit or loss if you pay a round trip commission charge of $45 per contract?
1.Speculation: Today is January 24 and you go long 1 real March futures at an opening...
1.Speculation: Today is January 24 and you go long 1 real March futures at an opening trade price of $0.6423 per real with an initial margin of $1,500. The settlement prices for January 24, 25 and 26 are $0.6393, $0.6441 and $0.6496 per real respectively. On January 27 you close out your contract at $0.6483 per real. (a) Calculate your daily account position and (b) Find the ending account balance on January 27 at liquidation (size of contract = real...
Today is March 4. You believe that the Euro (EUR) will appreciate. Your trading authority is...
Today is March 4. You believe that the Euro (EUR) will appreciate. Your trading authority is US$ 15,000,000. The spot $/€ is 1.3100 The September contract is trading at $/€ 1.3106 The EUR contract size is €100,000. You decide to use the futures market at the Chicago Mercantile Exchange to speculate you entire trading authority. 1, You would most likely: Buy futures contracts at $/€ 1.3100.Buy futures contracts at $/€ 1.3106.Sell futures contracts at $/€ 1.3100.Sell futures contracts at $/€...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT