Question
A company expects to borrow $1 million in money markets in three months time. The current interest rates are 2.40% and expected to rise. The
A company expects to borrow $1 million in money markets in three months time. The current interest rates are 2.40% and expected to rise. The company uses the futures markets to sell ten bank bill futures at 97.50. Calculate the value of ten bank bill futures contract when one futures contract has a face value of $1,000,000.
Answer: $993873.38
How to work it out please?
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Inside Private Equity
Authors: James M. Kocis, James C. Bachman IV, Austin M. Long III, Craig J. Nickels
1st Edition
0470421894, 978-0470421895
