A company buys a futures contract for New Zealand Dollars at a price of $0.5826/NZD. At...
- A company buys a futures contract for New Zealand Dollars at a price of $0.5826/NZD. At maturity the NZD is trading for S0.5846/NZD. Calculate the gain (loss) per NZD.
- A company sells a futures contract for New Zealand Dollars at a price of $0.5826/NZD. At maturity the NZD is trading for $0.5866/NZD. Calculate the gain (loss) per NZD.
Homework Answers
Since price has increase over the period, company occurs a loss.
So, loss = (0.5826-0.5866)/NZD = $-0.004/NZD
the gain (loss) per NZD = $-0.004
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