A 3-month Eurodollar futures contract starts with a price of 97.72 and by the time it...
A 3-month Eurodollar futures contract starts with a price of 97.72 and by the time it is sold it is priced at 98.56. If three contracts are shorted, what is the overall gain or loss?
Homework Answers
If the contracts are shorted, then it would be a loss because the price increased.
Loss = (98.56 - 97.72) = 0.84 per share
Loss per contract = 0.84 * 100 = $84
Loss for 3 contracts = 84 * 3 = $252
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