You observe that the spot price of the swiss franc

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1. You buy a futures contract on 100K AUD (Australian dollar), with a strike price of 73.9 cents per AUD. Lucky for you, the AUD appreciates to 85 cents. What is your total dollar profit on the contract? Enter answer in dollars.

2. You expect the price of GE to not change very much in the next month, so you go short on (sell) a straddle (a put and a call at the same strike) on 100 shares of GE, with a strike price of $24.7. The premiums on the put and the call are each $0.69. If the price at maturity is $28.8, what is your profit from this position?

3. You observe that the spot price of the Swiss franc (CHF) is 1.02 USD/CHF, and that the 1 year forward rate is 1.15 USD/CHF. What is the percent forward premium? Enter answer as percent, accurate to 2 decimal places.

Reference no: EM131989847

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