Question
2. Consider a trader who takes a long position in a six-month futures contract on the euro. The forward rate is $1.75 = 1.00; the
2. Consider a trader who takes a long position in a six-month futures contract on the euro. The forward rate is $1.75 = 1.00; the contract size is 62,500. At the maturity of the contract the spot exchange rate is $1.65 = 1.00.
a. The trader has lost $625.
b. The trader has lost $6,250.
c. The trader has made $6,250.
d. The trader has lost $66,287.88
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Principles Of Finance
Authors: Scott Besley, Eugene F. Brigham
2nd Edition
003034509X, 9780030345098
