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Question 15 (1 point) You buy one Eurodollar JUL 2020 future, which is quoted at 98.5. What will be your profit if LIBOR at maturity
Question 15 (1 point) You buy one Eurodollar JUL 2020 future, which is quoted at 98.5. What will be your profit if LIBOR at maturity is 2%. -$5k O $1.2k $1.2k O $5k Question 16 (1 point) Firm A wants to issue floating rate debt. Its options: T-bond + 30 bp (fixed) LIBOR +10bp (floating). Swap rates for LIBOR: T+25 bp (bid), T+ 30 bp (ask) A's lowest cost of capital is ..... OL OL +10bp OL- 5bp OL +5bp Question 15 (1 point) You buy one Eurodollar JUL 2020 future, which is quoted at 98.5. What will be your profit if LIBOR at maturity is 2%. -$5k O $1.2k $1.2k O $5k Question 16 (1 point) Firm A wants to issue floating rate debt. Its options: T-bond + 30 bp (fixed) LIBOR +10bp (floating). Swap rates for LIBOR: T+25 bp (bid), T+ 30 bp (ask) A's lowest cost of capital is ..... OL OL +10bp OL- 5bp OL +5bp
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