Speculating on the direction of the move

Assignment Help Finance Basics
Reference no: EM133432479

Question: At an announcement of some sudden bad news, a liquid underlying makes a 40% down move within a very short period of time. Use the concept of volatility to take advantage of this situation without speculating on the direction of the move

Reference no: EM133432479

Questions Cloud

Compute an amortization schedule for the first six months : If an investor purchased this mortgage, what will the timing of the cash flow be assuming that the borrower does not default
What is mike real property tax in 2020 : Mike purchased a $3 million apartment complex on June 1, 2020. The total real property taxes for this property in 2012 are $23,000. What is Mike's real property
Which were made redundant by the acquisition of niscayah : which were made redundant by the acquisition of Niscayah. Assume that they recognized a charge of $125 associated with closures during 2020 of which $50 was
Should felicia put the spectacular dress on her credit card : She could buy thisdress with her credit card. Sure, it's a lot of money, Felicia thinks, but she owes it to her public and her date to look dazzling
Speculating on the direction of the move : down move within a very short period of time. Use the concept of volatility to take advantage of this situation without speculating on the direction of the move
How do you right software development approach : How do you choose the right software development approach for a given project?
What other factors should be utilized by management : Working capital is a vital part of an organization's operations. What are the various factors that influence the effectiveness of working capital management?
What is the weighted-average cost of capital : The firm uses the CAPM to estimate the cost of common stock, and it does not expect to issue any new shares. What is its WACC
What is the total percentage return for an investor : What is the total percentage return for an investor who purchased a stock for $5.94, received $2.56 in dividend payments, and sold the stock for $10.53

Reviews

Write a Review

Finance Basics Questions & Answers

  Company weighted average flotation cost

Suppose your company needs $14 million to build a new assembly line.

  What is the price of the firm shares

1. A firm is expected to generate return on equity of 13.2% in the next year. It is expected to generate EPS of $4.69 in the next year.

  What required reserves ratio is implied

If the bank holds $65 million in deposits and currently holds bank reserves such that excess reserves are zero, what required reserves ratio is implied?

  Which of the following items would be included in the goodwi

Which of the following items would be included in the Goodwill asset? Expain. patents, trademarks, customers lists, synergies & brand names.

  What is the required return on syscotec

Flotation costs on any new issue of common equity will be 5% after tax. Based on this information, what is the required return on Syscotec's new common equity?

  Compute the net proceeds to the presley corporation

Compute the net proceeds to the Presley Corporation. (Do not round intermediate calculations and round your answer to the nearest whole dollar.)

  Record the cash collection

Pearl E. White Orthodontist specializes in correcting misaligned teeth. During 2012, Pearl provides services on account of $580,000. Of this amount, $70,000.

  What fee should the center charge per child per week

A not-for-profit childcare center is planning to expand its services by offering an after-school program. The childcare center operates 40 weeks.

  What will be your effective annual return

What is the bond's yield? If you hold the bond to maturity, what will be your effective annual return?

  Required rate of return on investment

What is the value today of receiving a single payment of $74,233 in five years if your required rate of return on this investment is 07.00%

  What is the maturity risk premium for the security

Assume that a 3-year Treasury security yields 3.70%. Also assume that the real risk-free rate (r*) is 0.75%, and Inflation is expected to be 2.25% annually.

  Estimate the firm cost of capital-wbs plc

WBS Plc. has a market capitalization of GBP100 billion and in equity beta of 0.8. It has GBP25billion of bonds rated ?B' by S&P with a yield to maturity of 7.1%

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