A trader buys a Eurodollar Futures contract ($1 million face value) @ 98.14 and closes it out @ 98.27. On this contract the trader has: a.) lost $325 b.) gained $325 c.) Lost $1300 d.) gained $1300 In the futures market, a contract does not trade for two days because trades are not permitted at the equilibrium price. The market for this contract is: a.) limit up b.) suspended c.) limit down d.) locked limit
D D
close thunder, its C D
C (because the closing price is higher that the price at the beginning) D
nice strange
Why not D when trader buys @ 98.14 and sells @ 98.27. I am confused.
I totally don’t get it. Strange can you please explain it ? Since, he is long increase in price will get him gains. That is how the calculations for margin and variation margin are done. What is that I am missing here ??
#1 is B. ED futures is $2500/point 0.13*2500 = $325. oops
thunderanalyst Wrote: ------------------------------------------------------- > I totally don’t get it. Strange can you please > explain it ? Since, he is long increase in price > will get him gains. That is how the calculations > for margin and variation margin are done. > > What is that I am missing here ?? NOthing - you gain money when price goes up and you are long the futures contract - every contract in the world
I got what Joey got. Now i am confused.
JoeyDVivre Wrote: ------------------------------------------------------- > #1 is B. > > ED futures is $2500/point 0.13*2500 = $325. > > oops where did you get 2500?
Just remember 1 basis point change worth $25. It’s 13 basis point change (27-13). The buyer gains 325. B
$1,000,000*1/4year * 1% = $2500
oh. thanks.
Eurodollar is 90 days, 90/360
Key information to remember is that Eurodollar quotes are based on 90-day LIBOR. So actual change is (98.27 - 98.14) x 90/360 = 0.0325% >>> 0.0325% x 1,000,000 = 325 (gain) Quick and dirty way to do this is remember that each tick (0.01%) in Eurodollar futures (or any T-bill futures) is worth $25 dollars. (13 x 25 = 325)
Damn you all for front-running while I came up with an eloquent response 
Thanks for the quick and dirty way nirjaina, I remember that is the books now.
sorry the answers are b d im off my game today guys