Hi David,
In the example @ 56:30. You mention that 98 * 100,000 is 98,000. Answer the number of contracts required is N* = 122. I think that should be 1.22 since 98 * 100,000 is 9.8 million.

Hi gvelden,

Each contract is for delivery of $100,000 in face value. So, a futures price of 98 corresponds to a fuctures contract of $98,000. So, I was following Hull’s example though technically I suppose we can think of it as (Price/100)*$100,000 Face. Given that, I think the 122 is probably okay...David