Trading volume and open interest for each traded contract

Assignment Help Financial Management

Reference no: EM131817203

1. Abby, Braylen, Chase, and Davis are trading futures contracts. Identify trading volume and open interest for each traded contract at the end of the following sequence of transactions:

a. Abby buys three October silver futures from Braylen

b. Chase sells seven December silver futures to Braylen

c. David buys ten October silver futures from Chase

d. Braylen sells two December silver futures to Abby

e. Abby sells one October silver future to Chase

2. The spot price of silver is $30 per ounce. The continuously compounded interest rate is 6% per year. The quoted six-month forward price for silver is $32

a. What should the arbitrage-free forward price for silver for a forward contract maturing in six months?

b. How would you arbitrage any mispricing?

Reference no: EM131817203

Questions Cloud

Some companies cross-list their shares : Some companies cross-list their shares, meaning that their stock trades on more than one stock exchange.

Determine whether the international fisher effect : Determine whether the international Fisher effect (IFE) appears to hold over those quarters for that currency.

Standard deviation of change in spot and future prices : Kellogg finds that the ratio of the standard deviation of change in spot and future prices over a two-month period for oats is 0.81

Consider price-weighted index and synthetic index : Consider a price-weighted index (I) and a synthetic index constructed from constituent stocks. The current level of I is 10,000 and the price of S is $10,000.

Trading volume and open interest for each traded contract : Identify trading volume and open interest for each traded contract at the end of the following sequence of transactions:

Cash flow to creditors and cash flow to stockholders : Cash flow to creditors. Cash flow to stockholders. Calculating cash flows. what was the cash flow to stockholders for the year?

Discount rate-what is the value : Assume a discount rate of 5%. What is the value today of $1,000 received in one year?

What was your leverage multiplier : What was your %portfolio return and % return on investment? What was your leverage multiplier?

What is the future value : What is the future value of $2,800 in 18 years assuming an interest rate of 8.1 percent compounded semiannually?

User Account

All Pages