How much would you need to be paid to enter

Assignment Help Finance Basics
Reference no: EM13289587

Suppose that the current value of a certain asset is $45000. The annual effective rate of interest is 4.5%. You are offered a 2 year long forward contract at a forward price of $50000. How much would you need to be paid to enter into this contract?

Reference no: EM13289587

Questions Cloud

Determine the maximum speed of the jumper : The Royal Gorge bridge over the Arkansas River is 310 m above the river. A 61-kg bungee jumper has an elastic cord with an unstressed length of 60 m attached to her feet. Assume that, Find the maximum speed of the jumper
Explain why benzoic acid and 4-nitroaniline are air dried : describe why benzoic acid and 4-nitroaniline must be air dried for such a long time or placed in an oven before taking a final mass and finding the melting point
Calculate the energy stored in the medium of coaxial cable : A coaxial cable consists of an inner conductor of radius 1.2cmand an outer conductor of radius 1.8cm. The two conductorsare separated by an insulating medium (μ =4μo). If the cable is 3m long and carries25mA current, calculate the energy stored in..
What is the projects pi : A project has an initial cost of $52,125, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital 12 %. What is the project's IRR? and What is the project's PI?
How much would you need to be paid to enter : Suppose that the current value of a certain asset is $45000. The annual effective rate of interest is 4.5%. You are offered a 2 year long forward contract at a forward price of $50000. How much would you need to be paid to enter into this contract..
Find the two minimum thicknesses : White light is incident normally on a thin soap film ( = 1.33) suspended in air. What are the two minimum thicknesses that will constructively reflect yellow ( = 577 ) light? Enter your answers in ascending order separated by a comma
Calculate m assuming the area of the coil : A 60-turn coil carries a current of 2A and lies in the plane x + 2y- 5z = 12 such that the magnetic moment m of  the coil is directed away from the origin. Calculate m, assuming that the area of the coil is 8cm2.
Calculate the fair price of a 6 month forward contract : The current price of a share of stock is 5, and the stock is expected to pay a dividend of 1 per share in 2 months and again in 5 months. The risk free annual effective rate of interest is 6%.
Define sodium sulfate added to the organic solution : why is anhydrous sodium sulfate added to the organic solution remaining after the extractions with 6 M HCL and 6 M NaOH

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate future value of common stock

The last dividend paid by Klein Corporation was $2. Klein's growth rate is expected to be a constant 5 percent for next three years, after which dividends are expected to increase at a rate of 10%.

  Determine the stock value today

A Store paid an annual dividend of $11.15 per share last month. Today the company announced that future dividends will be increasing by 2.6 percent yearly.

  Calculate weighted average cost of capital

Foe Corporation's has the capital structure given. Calculate the weighted average cost of capital.

  Calculate the company horizon value

A company estimates the following free cash flows during the next three years, after which FCF is expected to grow at a constant 6 percent rate.

  Debate on shareholder primacy versus stakeholder primacy

Shareholder Primacy versus Stakeholder Primacy because pursuing Corporate Shared Value achieves both objectives simultaneously or is the debate still not resolved?

  Prepare a report on the findings, conclusions, and ideas

Your assignment is to choose a motivational direcytion, describe your apaoorach, and justify why you selected that direction. Prepare a report on the findings, conclusions, and ideas.

  Determine rate of return

The value of the stock of Clarkson Company went from $50 to $56 last year. The firm also paid $2 in dividend. Determine the rate of return.

  What is the annual cost - depreciation and interest costs

A used car costs $ 120 000. car can be sold for $ 10 000 after six years. What is the annual cost (depreciation and interest costs) if the discount rate is 9%?

  Calculate the debt to total assets ratio

The following information were taken from the 2004 and 2003 financial statements of American Eagle Outfitters.

  Money-bond-stock and mortgage markets

The critical importance of money, bond, stock and mortgage markets as potential investment options is highlighted in terms of their impact on financial sector. Describe the linkages between each market, and how investors' choices would be affected.

  Estimate the level of output

Given the following cost function, estimate the level of output at which the cost function is minimized, and the level of the costs.

  Construct profitt diagrams or profit tables on expiration

Construct profitt diagrams or profit tables on expiration to show what position in IBM puts, calls and/or underlying stock best expresses the investor's objectives described below.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd