Question
Please show the working. On 15 Sep 20XX, the Oct Futures contract for Crude Oil dropped from $18.27 to -$37.63 per barrel. Suppose an European
Please show the working.
On 15 Sep 20XX, the Oct Futures contract for Crude Oil dropped from $18.27 to -$37.63 per barrel. Suppose an European investor closed her 1,000 barrels of long position in the Crude Oil futures contract on 14 Sep at $18.27. With an exchange rate: 0.92 EUR for 1 USD, if the investor closed her positions on 15 Sep, she would:
a) hold the futures contract that has fallen in value by EUR 51,428 b) have lost EUR 51,428.00 c) have to pay EUR51,428.00 and hold new futures contract priced at $37.63 d) hold the futures contract that has fallen in value by EUR 16,800 e) have lost EUR16,800 and hold new futures contract priced at $19.27
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