1. If a pair of Nike shoes cost $100 in U. S. while at the sane time, 654 n Chin
ID: 2819820 • Letter: 1
Question
1. If a pair of Nike shoes cost $100 in U. S. while at the sane time, 654 n China, and the current exchange rate is 6. 40 RMB/USD, shat is the rea rate between RMB and USD? cost of 4. Wike entered into one euro currenc y futures contract on January 8, 2018 to sell euros in June 2018 at the exchange rate of $ The contract size is e 125, 000 per contract, the initial margin is set at $4, 000 and the maintenance nargin is $ 3, 000. The daily settlement prices are given in the following table. call dates and Can you calculate daily losses/gains, work out margin addi t ional deposits, daily margin account balances loss/gain for Jan 15, 16 and 17? 7/8Explanation / Answer
Ans 3) real exchaege rate = 1/current exchange rate * (price in China/Price in US)
= 1/6.4 * 654/100 = 1.021875
Ans 4)
1.2347 125000 date settlement price Daily losses/gains Cumulative losses/gains Margin Call Margin Account Balance 15-Jan 1.2327 250 250 No 4250 16-Jan 1.2471 -1800 -1550 Yes 2450 17-Jan 1.2217 1625 75 No 4075Related Questions
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