Annualized return to the speculator, Finance Basics

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Annualized return to the speculator

Currently EURO contracts (125,000 EURO each) are traded at $0.8470. Spot rate is $0.8310 (ie EUR/USD 0.8310). Assume that a speculator bought 80 Euro futures contract (Euro10,000,000). Suppose speculator liquidated the contract one month later, when the contract closed at $0.8600. If the initial margin for each Euro contract is USD2,000, what is the annualized return to the speculator in this contract (NOTE:calculate simple annual return not compounded)?

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Finance Basics: Annualized return to the speculator

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Finance Basics: Annualized return to the speculator

Reference No:- TGS039820

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Capital gain net income problem

Q : Prepare a schedule to show the cash receipts from sales

Q : Find optimal units of labour and capital to maximize profit

Q : Taxable income if gross profits on sales given

Q : Annualized return to the speculator

Q : Information for the current tax year

Q : Draw consumer-s budget line in absence of food stamp program

Q : Blended principal and interest payment

Q : What tax issues should be considered

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Annualized return to the speculator

Reference No:- TGS039820

Recent Questions Asked Finance Basics

Q : Capital gain net income problem

Q : Prepare a schedule to show the cash receipts from sales

Q : Find optimal units of labour and capital to maximize profit

Q : Taxable income if gross profits on sales given

Q : Annualized return to the speculator

Q : Information for the current tax year

Q : Draw consumer-s budget line in absence of food stamp program

Q : Blended principal and interest payment

Q : What tax issues should be considered

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