ZuoTi.Pro
Question

The index multiplier for the dollar denominated CME Nikkei 225 index futures contract is $5. Suppose...

The index multiplier for the dollar denominated CME Nikkei 225 index futures contract is $5. Suppose that the current futures index price for the June Nikkei 225 contract is 14272, and the current spot market value of the Nikkei 225 index is 14432. What is the market value of the underlying asset for one contract, denominated in dollars?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

The market value of the underlying asset for one contract = Current spot market value * index multiplier

The market value of the underlying asset for one contract = 14432 * 5 = $72,160

The underlying asset here is the Nikkei 225 Index.

0 0
Add a comment
Know the answer?
Add Answer to:
The index multiplier for the dollar denominated CME Nikkei 225 index futures contract is $5. Suppose...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Q9 Today's settlement price on the Osaka Exchange September Nikkei 225 6 poi futures contract is...

    Q9 Today's settlement price on the Osaka Exchange September Nikkei 225 6 poi futures contract is 22,340.You have a two contract long position and your margin account currently has a balance of ¥527,000. The units of the contract are ¥1000 per index point. The contact settlement prices at the end of each of the next three days are 22,260, 22370 and 22,410. What is the balance in your margin account on each of the next three days?

  • The multiplier for a futures contract on a stock market index is $250. The maturity of...

    The multiplier for a futures contract on a stock market index is $250. The maturity of the contract is 1 year, the current level of the index is 1,310, and the risk-free interest rate is .5% per month. The dividend yield on the index is .2% per month. Suppose that after 1 month, the stock index is at 1,315. a. Find the cash flow from the mark-to-market proceeds on the contract. Assume that the parity condition always holds exactly. b....

  • 9. 10.00 points value: The multiplier for a futures contract on a certain stock market index is $250. The maturity of the contract is year, the current level of the index is 1,500, and the risk-f...

    9. 10.00 points value: The multiplier for a futures contract on a certain stock market index is $250. The maturity of the contract is year, the current level of the index is 1,500, and the risk-free interest rate is 0.3% per month. The dividend yea on the index is 02% per month. Suppose that after one month, the stock index is at 1529. a. Find the cash flow from the mark-to-market proceeds on the contract. Assume that the parity condition...

  • The multiplier for a futures contract on a certain stock market index is $250. The maturity...

    The multiplier for a futures contract on a certain stock market index is $250. The maturity of the contract is one year, the current level of the index is 2,000, and the risk-free interest rate is 0.4% per month. The dividend yield on the index is 0.1% per month. Suppose that after one month, the stock index is at 2,033. a. Find the cash flow from the mark-to-market proceeds on the contract. Assume that the parity condition always holds exactly....

  • The multiplier for a futures contract on a certain stock market index is $50. The maturity...

    The multiplier for a futures contract on a certain stock market index is $50. The maturity of the contract is one year, the current level of the index is 2,000, and the risk-free interest rate is 0.2% per month. The dividend yield on the index is 0.1% per month. Suppose that after one month, the stock index is at 2,040. a. Find the cash flow from the mark-to-market proceeds on the contract. Assume that the parity condition always holds exactly....

  • The multiplier for a futures contract on a stock market index is $70. The maturity of...

    The multiplier for a futures contract on a stock market index is $70. The maturity of the contract is 1 year, the current level of the index is 1,840, and the risk-free interest rate is 0.8% per month. The dividend yield on the index is 0.3% per month. Suppose that after 1 month, the stock index is at 1,860. a. Find the cash flow from the mark-to-market proceeds on the contract. Assume that the parity condition always holds exactly. (Do...

  • On January 1, you sold one February maturity S&P 500 Index futures contract at a futures...

    On January 1, you sold one February maturity S&P 500 Index futures contract at a futures price of 2,418. If the futures price is 2,495 at contract maturity, what is your profit? The contract multiplier is $50. (Input the amount as positive value.)

  • On January 1, you sold one March maturity S&P 500 Index futures contract at a futures...

    On January 1, you sold one March maturity S&P 500 Index futures contract at a futures price of 1,000. If the futures price is 1,100 on February 1, what is your profit or loss? The contract multiplier is $250. (Input the amount as positive value.) (Click to select)LossProfit of $

  • Micro E-mini S&P 500 Futures contract

    You have \(\$ 100,000\) to invest today. You are bullish about the stock market and you think that the S\&P 500 index is going up. You want to leverage your investment by taking a long position in S\&P 500 index futures.Micro E-mini S\&P 500 Futures contractThere is a new futures contract on the S\&P 500 index with a lower contract multiplier-only 5 times the index. You are using this contract to implement your strategy. You chose the contract expiring on...

  • C. T0 d. 114 II. Spot-Futures Parity (L.O3, CFA) A stock index futures contract maturing in...

    C. T0 d. 114 II. Spot-Futures Parity (L.O3, CFA) A stock index futures contract maturing in one currently traded price of S1,000. The cash index has a dividend yield of 2 percent an est rate is 5 percent. Spot-futures parity then implies a cash index level of a. $933.33. b. $970.87 c. $1,071 d. $1,029 futures contract matures in one year. The

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT