What is the market value of the collateral

Assignment Help Finance Basics
Reference no: EM132826090

A hedge fund wants to borrow $2,500,000 using a 3 month repurchase agreement. The repo dealer is quoting a buyback price of $2,533,414.86 and a haircut of 2.49%.

What is the market value of the collateral that the hedge fund must deliver to the repo dealer?

Enter your answer in the box below. Use two decimal places. Do not include the dollar sign, $.

Reference no: EM132826090

Questions Cloud

What is the value of a japanese project : What is the value of a Japanese project with a growing perpetuity (with growth rate 0.5%) which starts to pay in year 2: Yen 1 mm
Calculate the break-even point in units for this product : Calculate the break-even point in units for this product. Marina Inc. sells a unique product that is popular with upper income families.
How many total units must be sold for jbi to break even : Jeff Bloom Industries, How many total units (total units of coffee mugs + total units of teacups), must be sold for JBI to break even?
Describe the two basic types of transaction exemptions : Describe the two basic types of "transaction" exemptions that may be available to VirtualStream that would allow the firm not to have to register
What is the market value of the collateral : A hedge fund wants to borrow $2,500,000 using a 3 month repurchase agreement. The repo dealer is quoting a buyback price of $2,533,414.86 and a haircut of 2.49%
What is the total payoff on the speculator options portfolio : If IBM's stock price on date T is equal to $118.22 per share, what is the total payoff on the speculator's options portfolio?
What is the time value of the put option : A put option is priced at $12.8 per share and the put's strike price is equal to $79 per share. The price of the underlying stock is equal to $70.12 per share.
What is the payoff per share on the investor bear spread : If the stock price on the expiration date is $56.45 per share, what is the payoff per share on the investor's bear spread?
Describe the plan of evaluation you would have recommended : Describe the plan of evaluation you would have recommended for the Affordable Care Act. What data would have been important to have included in that evaluation.

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain the tools of a central bank

Explain the tools of a Central Bank when it comes to controlling the money supply

  Areas of working capital management-capital structure

Explain the goal of the firm and how manager decisions in the areas of working capital management and capital structure act to achieve this goal.

  What is the value of a call option written on the stock

What is the value of a call option written on the stock with the same exercise price and expiration date as the put option?

  What is the price-earnings ratio

Bernice's has $823,000 in sale. The profit margin is 3.9 and the firm has 7,500 shares of stock outstanding. The market price per share is $17.

  Two most common traditional valuation methods

Please discuss the two most common traditional valuation methods: Earnings Multiple, and Discounted Cash Flow Method.

  Identifying banking relationships

Make sure to also incorporate how the firm currently structures its capital by identifying banking relationships.

  What are the four dimensions of the balanced scorecard

Try a demo if you can find one. What are the four dimensions of the balanced scorecard and how might it help in a strategic planning process? How would it help in monitoring day-to-day operations?

  What are the after-tax proceeds from the sale

If the machine is sold at the end of the second year for $45,000, what are the after-tax proceeds from the sale, assuming your tax rate is 34%

  The firms net capital spending for 2014 was 1030000 and the

the december 31 2013 balance sheet of schism inc. showed long-term debt of 1435000 147000 in the common stock account

  What is the maximum leverage ratio

A broker/dealer establishes the maximum margin requirement for the purchase of Alphabet stock at 45% percent. What is the maximum leverage ratio associated.

  Trend in the operating margin tell the analyst

XYZ's operating margin is 15%, 14%, 12%, 8% for years 1,2,3,4 respectively. What could this this trend in the operating margin tell the analyst? Be specific.

  Calculate annual effective rate of discount

A deposit of X is made into a fund which pays an annual effective interest rate of 6% for 10 years. At the same time, X/2 is deposited into another fund.

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