How many ticks has the futures price moved

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Question: A corporation will receive USD7 million in 3 months' time for a period of 3 months. The current 3-month interest rate quotes are 5.675.61. The Eurodollar futures price is 94.90. Suppose in 3 months the interest rate becomes 5.25% for 3-month Eurodeposits and the Eurodollar futures price is 94.56.

a. How many ticks has the futures price moved?

b. How many futures contracts should this investor buy or sell if she wants to lock in the current rates?

c. What is the profit (loss) for an investor who bought the contract at 94.90?

Reference no: EM131696897

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