Question
A Eurodollar future contract for 3 months starting in one year is currently quoted at 94.98. a) What is the settlement price of the Eurodollar
A Eurodollar future contract for 3 months starting in one year is currently quoted at 94.98.
a) What is the settlement price of the Eurodollar under todays information? Remember Eurodollars have a notional principle of $1,000,000.
b) Assume you took a long position (lender) and the price has moved to 95.05. How much has your position gained or lost?
Answer to part a is $987,450
Answer to part b is $175
How do you solve this problem. Please show all work. Sadly this is the entire question and we are given no more info...
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The Oxford Handbook Of State Capitalism And The Firm
Authors: Mike Wright, Geoffrey T. Wood, Alvaro Cuervo-Cazurra, Pei Sun, Ilya Okhmatovskiy, Anna Grosman
1st Edition
0198837364, 978-0198837367
