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Suppose You Are Holding a Long Position in a Euro

Question 1

Multiple Choice

Suppose you are holding a long position in a euro futures contract that matures in 76 days.The agreed-upon price is $1.15 for 125,000 euro.At the close of trading today,the futures price has risen to $1.155.Under marking to market,you now


A) hold a futures contract that has risen in value by $1,250
B) hold a futures contract that has fallen in value by $625
C) will receive $625 and a new futures contract priced at $1.155
D) must pay over $1,250 to the seller of the futures contract

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