Assume that the Euro (EUR) futures price for September is USD 1.90. Given that 115,000 units are in a Euro futures contract, the seller of Euro futures will receive which of the following? a. EUR 115000 b. EUR 60526 c. USD 60526 d. USD 218500 e. EUR 218500
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Assume that the Euro (EUR) futures price for September is USD 1.90. Given that 115,000 units are in a Euro futures contract, the seller of Euro futures will receive which of the following?
a.
EUR 115000
b.
EUR 60526
c.
USD 60526
d.
USD 218500
e.
EUR 218500
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Solved in 3 steps
- Assume that today the euro futures contracts with a September 15th delivery date are priced at $1.3680/€ . Suppose that you sold 15 contracts of the euro futures today. If, by September 15th the spot rate is $1.3260/€ , your total profit/loss on your position is (the euro futures contract size is €125,000). $78,750 loss $78,750 gain €78,750 loss €5,250 loss None of the abovThe IMM index price in yesterday's newspaper for a September Eurodollar futures contract is 95.23. The IMM index price in today's newspaper for the contract mentioned above is 95.25. How much is the change in the actual futures price of the contract since the previous day? $25 $50 $75 $100 .On October 1, 2010, the spot price of the Euro was $1.46, and the price of the December 2010 futures contract was $1.45. During October 2010 the Euro appreciated, so that by November 1, 2010, it was selling for $1.51. What do you think happened to the price of the December 2010 Euro futures contract during November 2010? Give your reasoning?
- Use the futures contract data in the following table to answer the question. Open High Low Settle Change Interest New Zealand dollar CME NZD 100,000; NZD/USD Sept 0.6043 0.6175 0.6025 0.6048 -0.0007 34,157 Dec 0.6128 0.6195 0.6105 0.6126 0.0004 1,569 A trader goes LONG three December NZD futures and the spot rate at maturity is 0.6138. What is the value of her position?On 15 April 2021, JHB Bank quoted the following spot and swap rates between the rand and the euro (ZAR/EUR) to a client called MAZDALtd.Rates quoted by JHB Bank on (ZAR/EUR): Bid – OfferSpot (ZAR/EUR) (Spot date: 15 April 2021): 15.7258 – 19.55672-month swap rate (i.e., Forward value date: 15 June 2021): 1290 – 135012-month swap rate (i.e., Forward value date: 15 April 2022): 7055 – 9534Other important informationExpected inflation rate in SA over next 12 months: 4.67%Expected inflation rate in euro area over next 12 months: 1.95%The price of one Apple MacBook computer in euro area: EUR 689The price of one Apple MacBook computer in South Africa: ZAR 22350Euro area 12-month interest rate: 3.50% South African 12-month interest rate: 8.90% 2.1 The exchange rate at which JHB Bank is willing to sell the ZAR spot is ____? 2.2 The exchange rate at which JHB Bank is willing to buy the EUR two months forward is _____? 2.3 The exchange rate at which MAZDA Ltd. will buy the EUR 12 months forward?…A Euro futures contract expires in 66 days. The interest rates are i$=6.1% and i€=1.1% respectively. The current spot rate is $1.02/€. Assume 360 days a year. Then the futures's price is $_________/ϵ (Keep four decimal places.)
- As a US exporter selling to Europe. You wish to hedge a 1,040,000 Euro to be received in 3 months with futures or forwards. Futures contract sizes for the Euro are 125,000E each. How many dollars will you receive/pay for the goods if you hedge with futures, forwards, and not hedging? Also, rank them? Now End Spot 1.100-01 $/E 1.300-01 $/E Futures 1.120 $/E 1.315 $/E Forwards 1.130-31 $/EA Euro futures contract expires in 82 days. The interest rates are i$=6.2% and i€=3.0% respectively. The current spot rate is $1.07/€. Assume 360 days a year. The the futures's price is $_________/ϵ(Keep four decimal in your answer.)Consider the following prices, volume and open interest for gold futures contracts. Contract size: 100 oz Price units: $/oz (a) Which contract reached the highest price on this trading day? What was its contract value at that price? (b) Why is the high price equal to the low price for the contract expiring in October 2022?
- Suppose we enter into a 76-day T-bill futures contract quoted at 0.021. The notional amount is $1,000. What is the actual price?A firm in Germany expects to pay USD 900,000 in February. It is currently November and the Euro/USD spot rate is currently 1 Euro= USD 1.1400. (a) Suppose the price for euro currency futures is $1.1420 for December futures and $1.1450 for March futures,show how the firm might hedge its exposure using currency futures, (b) If the spot rate is USD 1.1200 when the dollar payment is made in February and the March Futures price is USD 1.1246, find the effective exchange rate obtained for the dollar payment as a result of the hedge. Note: Euro futures: Amount Euro125,000, tick size $0.0001, value per tick $12.50Let’s say a CBOT 10-year U.S. Treasury note futures contract has a quoted price of 103-18. If annual interest rates go up by 1.00 percentage point, what is the gain or loss on the futures contract? (Assume a $1,000 par value, round the new interest rate to 3 decimal places when written as a decimal, and round the change in price up to the nearest whole dollar.)
