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All main topics / Finance & Investment / Derivatives / Derivatives
126
A trader enters into a long position in one Eurodollar futures contract. How much does the trader gain when the futures price quote increases by 6 basis points?
A.   $6
B.  $150
C.$60
D.   $600                                                                                               

Answer: B

The trader gains $25 for each basis point. The gain is therefore 25×6 or $150.
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Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015

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