User Account

All Pages

What should be the contractual forward price

Assignment Help Finance Basics
Reference no: EM133253208

A one-year forward contract on a non-dividend-paying stock is entered into when the stock price is $49.83, the risk-free rate of interest is 2.1% per annum with continuous compounding, and the repo rate on the stock is 11 basis points per annum. What should be the contractual forward price (in dollars)?

[Answer with a least two decimals, no unit, and no thousand separators; use "." as decimal separator.]

Reference no: EM133253208

Questions Cloud

What is the appropriate hedge ratio : Suppose it is currently May 23, 2008, and your firm will need to borrow $100 million on June 19 until October 5. You can borrow at the prevailing 90-day LIBOR p
What is rogue pretax wacc : Rogue Space makes equipment for fixing satellites in space. It has $1 million in debt outstanding, equity valued at $2 million, and pays corporate income tax at
Time value of money when planning for retirement : How should one consider the time value of money when planning for retirement? Please share examples within your response.
What would be the price of the option : A put option on a stock with three months to maturity has the exercise price of $60. The stock is currently traded at $59 per share and a volatility of 30% per
What should be the contractual forward price : A one-year forward contract on a non-dividend-paying stock is entered into when the stock price is $49.83, the risk-free rate of interest is 2.1% per annum with
Draw a timeline graph for the bond : Suppose that Ford issued a coupon bond at a price of $1,100 on January 1, 2019. The coupon bond has the following characteristics:
What is the pretax cost of debt : Marysa Corp. issued a 18-year, 8 percent semiannual bond 3 years ago. The bond currently sells for 92 percent of its face value. The company's tax rate is 22 pe
Transport packages of cement : In an industrial application in which a conveyor belt with dimensions of 5m long by 2m wide, must transport packages of cement. The plant is known to be located
Estimate the wacc for unitron : Unitron Corporation has book equity equal to 100 and book debt equal to 100, with an implied book leverage (debt/assets) ratio of one-half. The ratio of market-

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd