What is the gain and loss on the position

Assignment Help Financial Management
Reference no: EM131347800

You own a put contract on a Treasury bond with a strike price of 101-12. The contract represents $100,000 of bond principal, and had a premium of $750. The actual Treasury bond price falls 98-16 at the expiration. What is the gain/loss on the position?

Reference no: EM131347800

Questions Cloud

Mobile workforce instead of a traditional office : What are some arguments used in favor of using a mobile workforce instead of a traditional office work force?
Gains and loses associated with buying put for stock : Draw a graph depicting the gains and loses associated with buying a put for a stock with a $20 strike price and a premium of $2. Calculate the gain or loss associated with 50 shares and a stock price of $25.
Currently manage the investment portfolio : The year is 2017 and you currently manage the investment portfolio for a large corporation, you currently hold $50 million 5 3/8% Treasury bonds that mature in 2025. You expect interest rates to rise over the next year ad want to hedge your position...
Complexity of healthcare delivery : The need for skilled managers within all healthcare settings is increasing due to the complexity of healthcare delivery. In addition, supervisory positions are difficult and demanding. We have either worked or know people who have worked for "good..
What is the gain and loss on the position : You own a put contract on a Treasury bond with a strike price of 101-12. The contract represents $100,000 of bond principal, and had a premium of $750. The actual Treasury bond price falls 98-16 at the expiration. What is the gain/loss on the positio..
Examine the mediums portrayal of sexuality : Complete a web search to find a cartoon or advertisement in the popular media that conveys an image or message related to sexuality and older people - Examine the medium's portrayal of sexuality in older adults by answering the following questions.
What is the gain and loss on this transaction : A hedger takes a short position in five T-Bill futures contracts at the price of 98 5/32. Each contract is for $100,000 principal. When the position is unraveled, the price is 95 12/32. What is the gain/loss on this transaction?
Coming of the new organization : Based upon the readings (Drucker's "The Coming of the New Organization" and Zahra's "The Changing Rules of Global Competitiveness in the 21st Century"), identify at least four changes (two from each article) that you think have been the most sign..
Organization of supermarkets-grocery stores : Using the organization of supermarkets/ grocery stores , identify its core culture and the elements of its observable culture. What do you think needs to be changed to align your culture to the elements in the environment?

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate Expected NPV for minimum ROR

Calculate Expected NPV for minimum ROR 10% on buying and drilling an oil lease with these estimated costs: The lease costs 150,000 dollars at time zero and drilling will start at year 1 with the cost of 300,000 dollars. There is 70% that well is a dr..

  What is the annual cost savings expected to result

What is the annual cost savings expected to result from installation of the proposed JIT system?- Should the firm install the system?

  Technical analysts and fundamental analysts

Technical analysts and fundamental analysts try to earn superior returns in the stock market. Explain how their efforts help keep the market efficient.

  Analyze how it performs in different economic environments

Choose a specific investment vehicle (stocks, bonds, mutual funds, commodities) and analyze how it performs in different economic environments. The different economic environments to analyze are either strong or weak. For example, stocks do well hist..

  What is the present value of savings account

Suppose you invest $ 2,026 today to start a business. In 4 years you hope to sell this company for $ 8,865. What would be your annualized rate of return? Assume that, starting next year, you put $ 662 into a savings account that pays 9 % interest eve..

  Prepare a balance sheet of pb ltd

Prepare a balance sheet of PB Ltd as at 31 December 2004 from the information listed using the vertical format. Bear in mind that there is a missing item which needs to be determined and inserted.

  How much can you withdraw each month from your account

You are planning to save for retirement over the next 35 years. To do this, you will invest $840 per month in a stock account and $440 per month in a bond account. The return of the stock account is expected to be 10.4 percent, and the bond account w..

  Net annual rate of return to the nearest basis point

You have $16,000 to invest in a mutual fund with a NAV = $45. You choose a fund with a 4% front load, a 1% management fee, and a 0.25% 12b-1 fee. Assume that the management and 12b-1 fees are charged on year-end assets. The gross annual return on the..

  Trade-off theory point to an optimal capital structure

A project requires $428,000 of equipment that is classified as seven-year property. What is the depreciation expense in Year 3 given the following MACRS depreciation allowances, starting with Year 1: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and ..

  What is the present value of his inheritance

His recently departed dear Aunt Annie, may she rest in peace, has left Tom a 6-year annuity paying $4,500 per year. He will receive the first payment 4 years from today. If he is discounting at 7% (EAR), what is the present value of his inheritance?

  Balance sheet equity-shares of stock outstanding

Fly Away, Inc., has balance sheet equity of $6.4 million. At the same time, the income statement shows net income of $992,000. The company paid dividends of $510,880 and has 200,000 shares of stock outstanding. If the benchmark PE ratio is 28, what i..

  Charges customers for their wind generated electricity

Viento Windmills is a utility that charges customers for their wind generated electricity. With their current technology, they earn a total of $65 million each year to pay out to their 3 million shareholders.

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