Am. 112. Use the table to answer following question(s).April 19, 2009, British Pound Option Prices (cents per pound, 62,500 pound contracts).Option &UnderlyingStrikeCalls-LastPrice MayMay June JulyPuts-LastMay JuneJuly144814400.881.421.420.521.06144814500.421.02-144814600.200.68 0.722.32Refer to Table 7.1. What was the closing price of the British pound on April 18, 2009?A. £1.448/$B. $1.448/£C. $14.48/£OD. none of the above

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Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Suppose you work as a broker in an investment company, and there is an expectation that the market interest rate will be 0.029. based on this expectation you are required to calculate the market price for the following CD;Issue date: 1 January 2021 Maturity date:10 May 2021. The face value OMR 10000. Interest on CD: 5 percent. Select one: a. 15942.02 b. 15574.10 c. 15677.97 d. All the given choices are not correct e. 15572.50
Tony Begay at Saguaro Funds. Tony Begay, a currency trader for Chicago-based Saguaro Funds, uses the following futures quotes on the British pound (£) to speculate on the value of the pound a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3981/, what is the value of her position? b. If Tony sells 12 March pound futures, and the spot rate at maturity is $1.4559/E, what is the value of her position? c. If Tony buys 3 March pound futures, and the spot rate at maturity is $1.4550, what is the value of her position? d. If Tony sells 12 June pound futures, and the spot rate at maturity is $1.3981/C, what is the value of her position? CID a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3981/2, what is the value of her position? The value of Tony's position is $(Round to the nearest cent. Use a minus sign if value is negative)
Suppose that a trader observes the rates provided in the following table. Based on these rates, IRP is and covered interest arbitrage is _ (Hint: Use the formal equation for IRP and round your calculations to 3 decimal places.) Ss/e 1.1655 F6.$/E 1.1690 6-month is 1.8% 6-month ie 1.5% Onot holding; not possible holding; possible not holding; possible holding; not possible
The following are call option premiums and futures settlement prices for ICE cotton. These prices were quoted on December 16th, 200X. These prices are used in problems 25 through 29 (recopied here for your convenience). Strike Price (cents/lb)__ 48.00 49.00 50.00 51.00 52.00 53.00 Futures close 1.98. 0 0 1.98 O 0.60 1.38 ***** O 1.38.... 0.60 Mar-OX QUESTION - For the March-OX option with a strike price of 49.00, the intrinsic value is the time value is none of the above 2.56 1.98 1.48 1.09 .78 55 49.60 May-OX 6.14 5.33 4.59 3.92 3.31 2.74 53.69 and
Complete the table above for the holder of the short position. Day Beginning Balance Funds Deposited Settlement Price Futures Price Change Gain/Loss Ending Balance 0 0 5000 1 4960 2 4800 3 5050 4 5175 5 5200 6 5250.50 7 5310.75 2. How much are the total gains or losses by the end of day 7?
Assume the Eurodollar futures price at time t0 is 93.83 and the contract expires in 3 months time a. Calculate the 3-month forward rate implied by this price. b. Calculate the repayment amount for bonds with maturities of 3, 6, 9 and 12 months if the investor bought $5 million future contracts. no hand written solution plz
Use the futures contract data in the following table to answer the question. Open High Low Settle Change Interest New Zealand dollar CME NZD 100,000; NZD/USD Sept 0.6043 0.6175 0.6025 0.6048 -0.0007 34,157 Dec 0.6128 0.6195 0.6105 0.6126 0.0004 1,569 A trader goes LONG three December NZD futures and the spot rate at maturity is 0.6138. What is the value of her position?
The following are call option premiums and futures settlement prices for ICE cotton. These prices were quoted on December 16th, 200X. These prices are used in problems 25 through 29 (recopied here for your convenience). Strike Price (cents/lb)_ 48.00 49.00 50.00 51.00 52.00 53.00 Futures close 6 18 12 24 Mar-OX none of the above. 2.56 1.98 1.48 1.09 .78 .55 49.60 May-OX QUESTION - Based on the above price data, there are. represented among both the Mar-OX and May-OX contracts. 6.14 5.33 4.59 3.92 3.31 2.74 53.69 individual options contracts being
Use the data from Q5, and given the following annualized interest rates: r(30) = 4.0%; r(120) = 4.5%; r(210) = 5.0%, and; r(300) = 5.5% sixty days after the initiation of the pay-fixed swap. If the pay-fixed and receive-floating swap is to mark-to-the-market now, who pays whom and how much? Use $5m notional principal. Pay-fixed leg pays $24,214.41 to pay-floating leg. Pay-floating leg pays $24,214.41 to pay-fixed leg. Pay-fixed leg pays $25,455.45 to pay-floating leg. Pay-floating leg pays $25,455.45 to pay-fixed leg.
Assume that today the euro futures contracts with a September 15th delivery date are priced at $1.3680/€ . Suppose that you sold 15 contracts of the euro futures today. If, by September 15th the spot rate is $1.3260/€ , your total profit/loss on your position is (the euro futures contract size is €125,000). $78,750 loss $78,750 gain €78,750 loss €5,250 loss None of the abov
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Based on the information provided below, estimate the total profit or loss on a position: 1. Instrument traded: Futures Contract (London Metal Exchange) 2. Underlying metal: Nickel of 99.80% purity 3. Number of instruments traded: 130 4. Position taken: short 5. Quotation: USD per tonne 6. Lot size = 6 tonnes. %3D 7. Settlement type: physical 8. Futures price: 18782 9. Settlement price at the time of expiration: 18430

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