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Calculate the pl for the hedge fund

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Reference no: EM133069688

On the 18/12/2021, a hedge fund has sold short (short selling) 100 Million Euro of the OAT 0,5% 01/12/2032 at a price of 103%. On the repo market, the bond trades at a rate of -0,5% for a 3 months (90 days) period.

-What transactions should the fund enter to cover his short

-Describe the flows

-Calculate the P&L for the hedge fund on the 18/3/2022 if the bond trades at 102%

Reference no: EM133069688

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