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Dear Sir,
If a question gives many future prices, for instance, it is 1st Apr 2012, the company wants to borrow the loan in 4 months time, but the questions has Future prices for June 2012, Sep 2012.
Now the question is which Future price (whether June or Sep) to be chosen in order to compute the Profit/Loss.
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I do believe the furture price immediately on maturity of the loan. Giving near the expected cost of the change in the interest rate.
June and September future refer to the latest date on which you can close off the future (finish the deal).
So if you deal on a June future then you must finish the deal by the last day of June.
You choose the future that finishes soonest after the date the loan starts. (So for example, if the loan is to start on 1 August you would choose a September future)
With regard to calculating the profit or loss on the deal, you take the difference between the price of the future today (now) and the price on the day the loan starts (which is the day on which you will finish the futures deal).
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