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I believe the three methods mentioned in the question refer to the three different exchange rates listed. FUTURES - PRACTICE PROBLEMS 1. You take a
I believe the "three methods" mentioned in the question refer to the three different exchange rates listed.
FUTURES - PRACTICE PROBLEMS 1. You take a long position on a forward contract on GBP 30,000 at the rate F(USD/GBP) = 1.25. The initial performance bond is $1,500,000 while the maintenance performance bond is $1,300,000. Fill out the table below and compute the total gain/loss using the three methods. t S($/) GAIN / LOSS BALANCE ADDITION TOT BALANCE 0 $ $ $ 1 1.2485 $ $ $ $ 2 1.2431 $ $ $ $ 3 1.2438 $ $ $ $ FUTURES - PRACTICE PROBLEMS 1. You take a long position on a forward contract on GBP 30,000 at the rate F(USD/GBP) = 1.25. The initial performance bond is $1,500,000 while the maintenance performance bond is $1,300,000. Fill out the table below and compute the total gain/loss using the three methods. t S($/) GAIN / LOSS BALANCE ADDITION TOT BALANCE 0 $ $ $ 1 1.2485 $ $ $ $ 2 1.2431 $ $ $ $ 3 1.2438 $ $ $ $Step by Step Solution
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