Question
Assume that as of Oct 15, a futures contract specifying 125,000 Euro and a December settlement date is priced at $1.16 per Euro. In Oct,
Assume that as of Oct 15, a futures contract specifying 125,000 Euro and a December settlement date is priced at $1.16 per Euro. In Oct, Speculators expect the Euro will appreciate. What can speculators do? They would buy future contracts on Euro.
Assume that as of Oct 15, a futures contract specifying 125,000 Euro and a December settlement date is priced at $1.16 per Euro. In Oct, Speculators expect the Euro will appreciate. Assume that on the settlement date, the spot rate of the Euro is $ 1.10. What is the gain/loss on the futures positions you pick in question 1?
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Illustrating Finance Policy With Mathematica
Authors: Nicholas L. Georgakopoulos
1st Edition
3319953710, 978-3319953717
