Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
1. In December 1979 it was possible to buy a January 1980 contract in gold at the New York Commodity Exchange for $487.50 per ounce and sell an October 1981 contract for $614.80 on the same day. Under what condition would this have been profitable? Exactly what could you have done to make arbitrage profit if you had taken these possible? What type of interest rate is relevant in this context?
2. Assume that the risk free interest rate is 9% per annum with continuous compounding and that the dividend yield on a stock index is 4% per annum. The index is standing at 78 and the futures price for a contract deliverable in four months is 80. What arbitrage opportunities does this create?
3. Regression analysis is one technique often used in studying hedging problems. Using daily data for the previous year, a regression of KOSPI200 cash index returns on near KOSPI 200 futures returns yields the following output:
RC = α + βRf + ε
? = 0.00050, β = 0.82, R2 = 0.90, σ (ε) = 0.00217
Suppose that you wish to hedge 1-day risk of a $17M KOSPI200 index stock basket. If the current KOSPI200 cash index equals 265, how many near KOSPI200 futures 2 contracts should be sold to minimize risk?
Assume that the demand for running shoes is highly inelastic and the supply curve for running shoes is highly elastic. Suppose that the tastes of the exercising public shift away f
Does a firm's price equal marginal cost in the short run, in the long run, or both? Explain.
What are the instruments of monetary policies
Introducing the Foreign Trade Sector Most economies in the real world are open economies. They engage in trade with other economies. Goods and services are exported and import
what is the meaning of the credit multiplier in the monetary sector
Discuss whether high indirect taxes are best way to discourage smoking
An agency is having problems with personal phone calls made during working hours. Each minute of a personal call costs the agency $0.50 in wasted wages. The agency decides to hire
equilibrium in money market and derivation of lm curve
1) Assume that the production function for New Zealand is given by Y = AK0.57L0.43, where Y is real GDP (in 2000 constant dollars), K is real capital stock, L is labour. The parame
How do the five competitive forces in Porter's model affect the profitability of the overall industry? For example, in what way might weak forces increase industry profits, and in
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd