Reference no: EM132880061
Question -
Q1. Calculate the cost of 3 months PQR fates, if PQR (FV '10) cites $220 on NSE and the three months future value cites at $230 and the one month acquiring rate is given as 15% and the normal yearly profit is 25% per annum payable before expiry. Likewise inspect exchange openings.
Q2. BSE 5000
Value of portfolio $ 10,10,000
Risk free interest rate 9% p.a.
Dividend yield on Index 6% p.a.
Beta of portfolio 1.5
We accept that a future agreement on the BSE list with four months development is utilized to support the estimation of portfolio over next a quarter of a year. One future agreement is for conveyance of multiple times the record.
In light of the above data ascertain:
(i) Price of future agreement.
(ii) The acquire on short prospects position if file ends up being 4,500 of every three months
Q3. The portion of X Ltd. is presently selling for $ 300. Danger free financing cost is 0.8% each month. A three months prospects contract is selling for $ 312. Build up an exchange technique and show what your riskless benefit will be multi month consequently expecting that X Ltd. won't deliver any profit in the following three months.
Q4. A Mutual Fund is holding the accompanying resources in $ Millions: Investments in broadened value shares 90.00
Money and Bank Balances 10.00 100.00
The Beta of the value shares portfolio is 1.1. The file future is selling at 4300 level. The Fund Manager secures that the file will fall at the most by 10%. What number of file fates he should short for wonderful supporting? One record future comprises of 50 units.
Prove your answer expecting the Fund Manager's fear will emerge.