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Now consider a long position in the CME Euro/U.S. Dollar contract, It is written on 125,000 and quoted in $ per . The strike price
Now consider a long position in the CME Euro/U.S. Dollar contract, It is written on €125,000 and quoted in $ per €. The strike price is $1.30 the maturity is 3 months. At initiation of the contract, the long posts an initial performance bond of $6,500. The maintenance performance bond is $4,000. If tomorrow the price of the spot exchange rate become $1.26/Euro.
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To calculate the percentage return for the long CME EuroUS Dollar contract we need to determine the profit or loss from the change in the spot exchang...
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Advanced Financial Accounting
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
6th edition
013703038X, 978-0137030385
