On 2 September, a 90-day bill issued with a maturity of 1 December had a quoted price of $92. On 2 October (i.e. 30 days passed), the price was $92.50. Assume the bill face value is $1mil. Suppose that Harold bought 15 bills on 2 September and sold on 2 October, how much has Harold made or lost?

To calculate how much Harold has made or lost, we need to find the difference between the purchase price and the selling price of the bills.

Step 1: Calculate the purchase price Harold bought 15 bills on 2 September at a quoted price of $92 each. So, the total purchase price is 15 *$92 = $1380.

Step 2: Calculate the selling price On 2 October, the price of the bills increased to $92.50 each. So, the total selling price is 15 *$92.50 = $1387.50.

Step 3: Calculate the profit or loss The profit or loss is the selling price minus the purchase price. So, Harold made $1387.50 -$1380 = $7.50.

However, the question states that the face value of each bill is $1 million. The quoted prices are likely percentages of the face value. So, we need to adjust our calculations.

Step 1: Calculate the purchase price The purchase price per bill is $92/100 *$1,000,000 = $920,000. So, the total purchase price is 15 *$920,000 = $13,800,000.

Step 2: Calculate the selling price The selling price per bill is $92.50/100 *$1,000,000 = $925,000. So, the total selling price is 15 *$925,000 = $13,875,000.

Step 3: Calculate the profit or loss The profit or loss is the selling price minus the purchase price. So, Harold made $13,875,000 -$13,800,000 = $75,000.