Find the forward rate, If you were to buy 10 Sept 2011

Find the forward rate

Reference no: EM1343996

Consider the data in the table below.
Contract EURIBOR
Sept 2011 LIFFE Euribor STIR Future 99.35
Dec 2011 LIFFE Euribor STIR Future 99.05

a) If you were to purchase 10 Sept 2011 Euribor futures at 99.35 and sell them at 99.40 three days later, how much money would you have made or lost? Each future has a tick value of €25

b) What is the forward rate implied by the Dec 2011 STIR futures?

Detailed explanation along with formulas please.

Reference no: EM1343996

Questions Cloud

Illustrate what will be the changes with regard to prices : Illustrate what marketplace structure is more beneficial for Wonks to operate in also will this be the same marketplace structure which will benefit consumers.

Universal set of ethical standards for business : Do you feel that it is possible to create a universal set of ethical standards for business, or do you believe that cultural differences make universal standards impractical or impossible?

Drawing class diagram to show instructor serves department : One instructor also serves a department chair. Draw a detailed class diagram to represent the above information.

Explicates which influences the marginal benefits : Explicates which influences the marginal benefits also marginal costs associated with the decision to purchase a house.

Find the forward rate : If you were to buy 10 Sept 2011 Euribor futures at 99.35 & sell them at 99.40 three days later, how much money would you have made or lost? Every future has a tick value of €25

Such retailers can sell as many copies of vista : Such retailers can sell as many copies of Vista they such as at the prevailing marketplace price of $200.

How does the standard product of labor change : How does the standard product of labor change when the industry utilizes 81 units of labor.

Analyzing financial techniques : What tools or techniques would you use in examine business strategies, financial reporting & disclosure policies, financial performance, forecasts & fundamental values?

Function in programs to print upside down triangles : Apply function in programs to prints triangles, upside down triangles, and diamond.

User Account

All Pages