Use Figure 23.7 . Suppose the LIBOR rate when the first listed Eurodollar contra

Question

Use Figure 23.7 . Suppose the LIBOR rate when the first listed Eurodollar contract matures in February is .40%. What will be the profit or loss to each side of the Eurodollar contract? (Do not round intermediate calculations and round final answer to 2 decimal places. Enter the amount as positive value. Omit the "$" sign in your response.)

Use Figure 23.7 . Suppose the LIBOR rate when the first listed Eurodollar contract matures in February is .40%. What will be the profit or loss to each side of the Eurodollar contract? (Do not round intermediate calculations and round final answer to 2 decimal places. Enter the amount as positive value. Omit the "$" sign in your response.)

Explanation / Answer

February settlement price 99.7075 LIBOR rate 0.40% Februrary contract price 99.996 Difference 0.2885 Gain/loss for 0.01 change 25 Total gain loss 7.21

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