Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On Oct 5, 2011, you sold 10 Eurodollar futures contracts for Dec 2013 delivery at 98.995. You closed your position by buying 10 ED contracts
On Oct 5, 2011, you sold 10 Eurodollar futures contracts for Dec 2013 delivery at 98.995. You closed your position by buying 10 ED contracts at 99.015 on Jan 13, 2012. What is your gain or loss? One ED futures contract has a notional principal of $1 million with a 90-day maturity based on 30/360 day count method.
F(Oct 5, 2011)= | 98.995 |
F(Jan 13,2012)= | 99.015 |
No of contracts = | 10 |
Change in price quoted | |
$ amount gain (loss) |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started