Determine the profit or loss on the contract

Assignment Help Financial Management

Reference no: EM131176532

You are expecting interest rates to decline. You purchase a T-bill futures contract when the quoted price was 95.34. When this position was closed out, the interest rates declined and the price of the T-bill was now 95.89. Determine the profit or loss on the contract.

Reference no: EM131176532

Questions Cloud

Would the firm add the division : Assume that the firm in 12 above can add a new division at a cost of $80,000, which will increase NOPAT by $15,200. Would the firm add the division?

Describe profitable strategy : Calc the Put-Call Parity for the following situation and Analyze the following topics: Stock Price = $40; Strike Price = $35; Risk free rate =3%; Call Price = $8 (1 yr expire); Put Price = $1 (1 yr. expire) Describe a profitable strategy

Calculate the profit or loss on this transaction : You are a manager of a pension fund that specializes in smaller stocks. The market has been going up for the last 4 years and you are expecting a correction. Instead of selling the stocks, you decide to sell a Nasdaq 100 futures contract at a price o..

Expecting interest rates to increase : You are expecting interest rates to increase. You sell a T-bill futures contract when the quoted price was 94.23. When the position was closed out, the interest rates increased and the price was 92.56. Assuming the same information as number 3 except..

Determine the profit or loss on the contract : You are expecting interest rates to decline. You purchase a T-bill futures contract when the quoted price was 95.34. When this position was closed out, the interest rates declined and the price of the T-bill was now 95.89. Determine the profit or los..

Computerized information about stock prices : Linkup Systems, which provides investors with computerized information about stock prices, is considering the establishment of a lockbox system with its bank. It has just implemented a new system which allows it to extend disbursement by 0.5 days.

Loan servicing-profits if financial guarantees are purchased : You establish a trust to securitize $1 billion in mortgages that paid 12.45 percent interest and the average interest rate on the tranches used was 10.16 percent. The financial guarantees on the loans cost 1.23 percent. How much money would you have ..

Qualify to borrow on the payment to income ratios : Suppose your gross monthly income of $7,000. Assume that you expect property taxes and insurance to be $300 per month. In addition, assume you have automobile and student loan payments of $450 per month. If 30 year fixed rate mortgages have a current..

About the sells equipment : During the current year, Hugo sells equipment for $150,000. The equipment cost $175,000 when placed in service two years ago, and $55,000 of depreciation deductions were allowed. The results of the sale are (how much gain and what rate is it taxed at..

User Account

All Pages