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It is 1st May today and assuming that your company need to borrow $200,000,000 on 1st July for next 3 months. You are planning to
It is 1st May today and assuming that your company need to borrow $200,000,000 on 1st July for next 3 months. You are planning to use the Eurodollar Futures (EF) to hedge the possible change in the Libor rate between now and 1st July. The July EF is trading at 95.35 now and it turned out that on 1st July the EF is trading at 95.95. There are 92 days between 1st July to 1st October.
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1 Calculate the Change in Futures Price Change in EF 9595 9535 060 2 Calcula...
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
