Trea sury bond futures agreement

Assignment Help Financial Management
Reference no: EM131210257

Angela buys a Trea sury bond futures agreement for $94,000. On the delivery date, the spot price is $95,000. Does she win or lose? By how much?

If Angela bought the futures contract to hedge, can she lose? Explain.

Reference no: EM131210257

Questions Cloud

Best practice for hr management : Create a list of three best practices recruiters should use when screening potential candidates for a HR management position. Justify your selections. Create a new best practice for HR management based on the information that you learned in this co..
Minimize the possible unethical impact : Consider possible conflicts of interest you or others in your workplace must face. How does this affect decision making? Are these types of conflicts of interest avoidable? If so, how? If not, what can be done to minimize the possible unethical imp..
Is it as vulnerable to losses as an intermediary : Assume that an intermediary uses futures only to hedge risk but never to speculate. - Is it as vulnerable to losses as an intermediary that uses futures to speculate? Explain.
What could you do to make your communication more clear : Using course materials, explain how you can make sure that this kind of miscommunication does not happen in the future. Or when it does happen, what could you do to make your communication more clear?
Trea sury bond futures agreement : Angela buys a Trea sury bond futures agreement for $94,000. On the delivery date, the spot price is $95,000. Does she win or lose? By how much?
Declare a two-dimensional array : Declare a two-dimensional array that contains 10 rows , each of which will store 4 doubles. Execute the program in C++ explain how the array is initialized, how it is used in the program, how the nested for loops work, and what the output of the pr..
Research should samsonite undertake : 1. What type of marketing research should Samsonite undertake and why?
What are the page numbers for your reading : What are the page numbers for your reading? What country is being represented in your reading? Why did you choose this reading? What was your rationale? What words, sayings, or images stand out for you, and why?
Does ibm win or lose explain : IBM sells a Treasury bond futures agreement for $94,000. On the delivery date, the spot price is $95,000.- IBM sold the futures agreement to speculate. Does IBM win or lose? Explain.

Reviews

Write a Review

Financial Management Questions & Answers

  Project will need an initial investment

New Co is considering investing in a new hotel project. The project will need an initial investment of 1,000,000 in year zero and will generate 500,000 (after tax) cash flows for the four subsequent years.

  Outstanding callable bonds

Which of the following events would make it less likely that a company would choose to call its outstanding callable bonds?

  An equivalent financial position

Payments of $2600, due 50 days ago, and $3100, due in 40 days, are to be replaced by $3000 today and another payment in 30 days. What must the second payment be if the payee is to end up in an equivalent financial position, Money now earns 8.25% simp..

  Compute the after tax cost of these payments

Perry Bell paid $6,438 of state and local property tax this year. Compute the after-tax cost of these payments assuming: a. Perry doesn't itemize deductions on his Form 1040. b. Perry itemizes deductions, has a 33 percent marginal tax rate on regular..

  Compute after-tax cash flow to the daily planet

Compute after-tax cash flow to the Daily Planet from this investment (in reals) - What is the present value of the depreciation-related cash flow?

  Assume that the risk-free rate of interest

Harrison Corporation is interested in acquiring Van Buren Corporation. Assume that the risk-free rate of interest is 3% and the market risk premium is 7%.

  Issued common stock incorporating the flotation cost

Barry's stocks are being sold at a current price of $50 and the last dividend paid was $4.19, and dividends are expected to grow at a constant rate of 5 percent for the foreseeable future. Barry estimates that if he issues new common stock, the flota..

  Fixed-rate mortgage to buy new home

You need a 30-year, fixed-rate mortgage to buy a new home for $240,000. Your mortgage bank will lend you the money at a 7.5 percent APR for this 360-month loan, with interest compounded monthly. What will be the amount of the balloon payment if you a..

  Corporate bonds-what is the current price of the bond

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 15 years to maturity, and a coupon r..

  What is the forecasted return of this bond portfolio

Sioux Financial Corp. has forecasted its bond portfolio value for one year ahead to be $105 million. In one year, it expects to receive $10,000,000 in coupon payments. The bond portfolio today is worth $101 million. What is the forecasted return of t..

  The capital structure that maximizes firm value

As a general rule, the capital structure that maximizes firm value, or stock price also maximizes the expected rate of return on equity (ROE), maximizes the weighted average cost of capital (WACC)

  Earnings per share for the two expansion alternatives

The Lopez-Portillo Company has $11.9 million in assets, 70 percent financed by debt, and 30 percent financed by common stock. The interest rate on the debt is 13 percent and the par value of the stock is $10 per share. What is the degree of financial..

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