You bought one Eurodollar futures contract, if interest rate declines, you will have a
gain
loss
Eurodollar futures is inversely related to interest rates. Hence, in case of interest rate decline, one will have a gain.
You bought one Eurodollar futures contract, if interest rate declines, you will have a gain loss
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?
How can a SOFR, Federal Funds, or Eurodollar futures contract be used to imply the SOF rate, the Fed Funds rate, or the Eurodollar rate? Describe the underlying vs. the actual futures contract in both of these cases.
To hedge interest rate risk associated with its Eurodollar deposits, a company should buy Eurodollar futures contracts. true or false?
On Oct 5, 2011, you sold 10 Eurodollar futures contracts for Dec 2013 delivery at 98.995. You closed your position by buying 10 ED contracts at 99.015 on Jan 13, 2012. What is your gain or loss? One ED futures contract has a notional principal of $1 million with a 90-day maturity based on 30/360 day count method. F(Oct 5, 2011)= 98.995 F(Jan 13,2012)= 99.015 No of contracts = 10 Change in price quoted $ amount gain (loss)
A trader uses 3-month Eurodollar futures to lock in a rate of interest on a $7.5 million investment for 12 months. How many contracts are required? Should the trader buy or sell futures?
An investor uses 3-month Eurodollar futures contracts to lock in the rate of interest paid on a $25 million floating rate note for the next nine months. Assume that Eurodollar futures contracts which mature in 3 months, 6 months and 9 months are traded. What should the investor do? Should the investor buy or sell contracts? How many contracts should the investor trade? Which maturities should the investor choose?
You sold one vibranium futures contract at $2.29 per microgram. What would your profit (loss) be at maturity if the vibranium spot price at that time were $2.10 per microgram? Assume the contract size is 5,000 micrograms and there are no transactions costs. A. $950.00 gain B. $950.00 loss C. $300.00 gain D. $300.00 loss
The initial margin requirement of an interest rate futures contract is 12% with a price of $149,841. The futures is worth $125,000 per contract. The percentage profit/loss of the investor with a short position of this futures will be _________ if the futures price becomes $145,000. Multiple Choice A.37.92% loss B. 37.92% profit C. 26.92% profit D. 26.92% loss
A corporate treasurer would like to use 3-month Eurodollar futures contracts to lock in the rate of interest paid by the corporation on a one-year $100 million floating rate note which will be issued in 3 months. Assume that Eurodollar futures contracts which mature in 3 months, 6 months, 9 months, and 12 months are traded. How many contracts should the treasurer trade? Which maturities should the treasurer choose?
PART 1 - When you enter into a futures contract you have a: right obligation it depends on whether you are long (bought) or short (sold). all of the above. PART 2 Using gasoline futures to hedge exposure to changes in the price of jet fuel is an example of: speculating. swap-hedging. cross-hedging. swing hedging. PART 3 Speculators in futures markets provide liquidity which: raises transaction costs. lowers transaction costs. increases excess volatility. causes panics and crashes. PART 4 You...