On 16 March a US trader bought three Australian dollar futures contracts at 0.5200 (USD/AUD) when the spot exchange rate was 0.5000. On 14 July, the trader sold the three contracts at 0.5400 and bought the amount spot at 0.5250. (a) Calculate the value of the three contracts on 16 March. (b) Calculate the spot value of the Australian dollar amount equal to three contracts on 16 March. (c) Ignoring marking-to-market, calculate the net gain (loss) from the transactions conducted on 14 July
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On 16 March a US trader bought three Australian dollar futures contracts at 0.5200
(USD/AUD) when the spot exchange rate was 0.5000. On 14 July, the trader sold the
three contracts at 0.5400 and bought the amount spot at 0.5250.
(a) Calculate the value of the three contracts on 16 March.
(b) Calculate the spot value of the Australian dollar amount equal to three contracts on 16
March.
(c) Ignoring marking-to-market, calculate the net gain (loss) from the transactions
conducted on 14 July
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