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?
What is productivity? Productivity or average product (AP): It is output person which is output divided through number of workers AP= Q/L. There labour Productivity can
Determine what is the yield curve The yield curve is a graph of interest rates of different maturity (recalculated to yearly rates) at a particular point in time. It is common
Explain why we cannot measure the national product simply by adding up the production of all firms. Why do the economists use real GDP rather than nominal GDP to gauge economic
what happens when there is changes in the quantity supply?
Question 1: What is the equilibrium price and quantity? Question 2: How do you describe the market situation, if the market price is higher than the equilibrium price? Qu
Elements of Walmart's strategy have evolved in meaningful ways since the company's founding in 1962. Prepare a one page report that discusses how its strategy has evolved after rev
Suppose the Bank of Canada announces that it will raise the money supply in the future but does not change the money supply today. Using the Fisher equation, explain what happens t
Illustrate the circular flow of income and expenditure according to their models ( classical and keynesian)
Financing of Fiscal Deficit: Since the size of balanced budget of the multiplier is small, it is not for all time possible to get the needed demand expansion by raising the exp
The opportunity costs associated with the use of resources owned by a firm are: a. externalities b. implicit costs c. explicit costs d. sunk costs
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