A Welsh company will receive € 250,000 on March 1 and wants to cover its XR risk exposure. The company can be protected with two futures contracts (€ 125,000) due on March 24. The spot scenario as of March 1 is: January 6 March 1 Spot £ 0.9106 £ 0.9064 March futures 0.9124 0.9082

Today is May 1. Your firm purchased $15,000,000 face value of 180 day commercial paper today for a price of $14,550,000. You will need to liquidate the position in 120 days and you believe interest rates may move against you in the meantime and you decide to use euro$ futures to hedge the position. a) How many futures contracts should you use to fully hedge and should you buy or sell the futures contracts today if the September euro$ futures quote is at 98.55 and the December euro$ futures quote is at 97.35? Should you use the September or the December contract? b) One hundred and twenty days later, at the end of August the commercial paper is priced at $14,800,000 and the futures price quote for the September euro$ futures quote is at 98.95 and the December euro$ futures quote is at 98.25. What is the total dollar gain or loss on your futures position? What is the percentage interest rate earned on the commercial paper investment expressed as an effective annual rate or EAR including…

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

Assume today's settlement price on a CME EUR futures contract is $1.3154 per euro. You have a short position in one contract. EUR125,000 is the contract size of one EUR contract. Your performance bond account currently has a balance of $2,400. The next three days' settlement prices are $1.3140, $1.3147, $1.3063. Calculate the changes in the performance bond account from daily marking-to-market and the balance of the performance bond account after the third day. Required: Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Balance of the performance bond account

On Tuesday morning, an investor takes a long position in GBP futures contract with a size of GBP 70,500 that matures on Thursday afternoon. Using the below table, what will be the investor's net profit (loss)? Time Close Price Tuesday 1 GBP = USD1.75 Morning (T) Tuesday Close1 GBP = USD1.76 (T) Wednesday 1 GBP = USD1.80 Close (T+1) Thursday 1 GBP = USD1.78 Close (T+2) O a. USD 2,820 O b. USD 705 OC USD 2,115 O d.- USD 1,410

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 $/E

Imagine American Airlines (AA) is concerned about fuel prices rising in the minimize price risk, AA enters an agreement with a swap dealer in which it will pay the swap dealer a fixed payment of $85/bbl on July 15th 2024, in exchange for a variable payment from that swap dealer in the future which will be the August 2024 futures price on July 15th of 2024. Imagine that on July 15th of 2024, the futures price is equal to $75/bbl and the cash price is $75/bbl. In this case, what would be the net price the AA pays for crude oil in $/bbl? Ignore transaction fees. Enter your answer as a number to two decimal places. That is, if you believe the net price paid for crude oil is $21.12/bbl, enter "21.12" as your answer.

A trader takes a view that March KLSE CI futures which are currently trading at 1188.60 are about to enter a downtrend.  Should the trader go long or short futures. Assuming the trader maintains their original position until expiry and the cash settlement price is 1185.40, what will be the profit or loss? The contract size is RM50 per contract.

June 2021 Mexican peso futures contract has a price of $0.05194 per MXN. You believe the spot price in June will be $0.04525 per MXN. Required: a. What speculative position would you enter into to attempt to profit from your beliefs? b. Calculate your anticipated profits, assuming you take a position in three contracts. c. What is the size of your profit (loss) if the futures price is indeed an unbiased predictor of the future spot price and this price materializes? Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate your anticipated profits, assuming you take a position in three contracts. Note: Do not round intermediate calculations. Round your answer to the nearest whole number. Anticipated profit

Yesterday, you entered into a futures contract to sell €75,000 at $1.79 per €. Your initial performance bond is $1,500 and your maintenance level is $500. At what settle price will you get a demand for additional funds to be posted? $1.6676 per €. $1.1840 per €. $1.2084 per €. $1.7767 per €.