If December 2015 30-day interbank futures contracts are trading at 94.015, the total value of two contracts is:

Question

Quizplus · Accepted Answer

The value of an interbank futures contract is calculated based on the formula: Contract Value = (1 - interest rate) * $1,000,000. Given the futures are trading at 94.015, the implied interest rate is 1 - 0.94015 = 0.05985 or 5.985%. Therefore, the value of one contract is 0.94015 * $1,000,000 = $940,150. For two contracts, the total value is 2 * $940,150 = $1,880,300. However, the options provided seem to be based on a misunderstanding of the calculation method or a different context, as none of the values correctly reflect the calculation based on the given futures price. Given the options and assuming a possible misinterpretation or simplification for illustrative purposes, none directly align with the standard calculation. However, since the question and options might be based on a different premise or a simplified educational example, and without a direct calculation leading to the provided options, the correct answer based on the standard approach to calculating futures contract value cannot be determined from the given options. This indicates a need for clarification in the question or a review of the calculation method intended by the question.

If December 2015 30-Day Interbank Futures Contracts Are Trading at 94.015