User Account

All Pages

How many ticks has the futures price moved

Assignment Help Finance Basics
Reference no: EM131696897

Question: A corporation will receive USD7 million in 3 months' time for a period of 3 months. The current 3-month interest rate quotes are 5.675.61. The Eurodollar futures price is 94.90. Suppose in 3 months the interest rate becomes 5.25% for 3-month Eurodeposits and the Eurodollar futures price is 94.56.

a. How many ticks has the futures price moved?

b. How many futures contracts should this investor buy or sell if she wants to lock in the current rates?

c. What is the profit (loss) for an investor who bought the contract at 94.90?

Reference no: EM131696897

Questions Cloud

What are the distinctive competencies of tesla motors : What are the distinctive competencies of Tesla Motors. Who are its main competitors. How has the company sustained its competitive advantage?
Hr department in the company about age discrimination : If we are going to interview the director of an HR department in the company about age discrimination, what questions should we ask?
Analyze organizational design of state work force agencies : Analyze the organizational design of the State Work Force Agencies human resource management in relationship to the entire organization.
Calculate treasurer break-even forward rate of interest : The treasurer of a small bank has borrowed funds for 3 months at an interest rate of 6.73% and has lent funds for 6 months at 7.87%.
How many ticks has the futures price moved : A corporation will receive USD7 million in 3 months' time for a period of 3 months. The current 3-month interest rate quotes are 5.675.61.
Review case stuyd of the ice benchmark administration : Suppose practitioners learn that the ICE Benchmark Administration (IBA) will change the panel of banks used to calculate the yen LIBOR.
Comfortable with our verbal communication skills : Most of us are comfortable with our verbal communication skills. We know the technical "jargon" and terminology
Differences between leadership and management : What are some differences between leadership and management? How do these differences affect an organization?
Example of an individual financial coi : 1-An example of an individual financial COI is:

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd