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I do not quite understand the concept of “Interest lrate futures” and very confused about the answers of Example 1 of chapter 24.
Could any one help me to understand example 1? Why the amount of sell futures has to be $12M? And how do you calculate the profit on futures? I am trying to figure out where dose “400” come from in the answer for calculating profit.
what do you mean with chapter 24? mabye you should tell first which book you are using from which publisher…
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