A STRIPS traded on April 30, 2020, matures in 18 years on May 1, 2038. Assuming a yield to maturity of 6 percent, what is the STRIPS price? Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plag
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A STRIPS traded on April 30, 2020, matures in 18 years on May 1, 2038. Assuming a yield to maturity of 6 percent, what is the STRIPS price?
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
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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. 15572.50Suppose you work as a broker in an investment company, and there is an expectation that the market interest rate will be 0.031. 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.Suppose you sell seven March 2021 silver futures contracts on December 4, 2020, at the last price of the day. Use Table 25.2. a. What will your profit or loss be if silver prices turn out to be $25.01 per ounce at expiration? (Enter your answer as a positive value. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What will your profit or loss be if silver prices are $23.13 per ounce at expiration? (Enter your answer as a positive value. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a. b.
- June 2019 Mexican peso futures contract has a price of $0.05197 per MXN. You believe the spot price in June will be 0.05831 per MXN a. What speculative position would you enter into to attempt to profit from your beliefs? O Short position O Long Position b. Calculate your anticipated profits, assuming you take a position in three contracts. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Anticipated profit c. What is the size of your profit (loss) if the futures price is indeed an unbiased predictor of the future spot price and this price materializes? (A Negative value should be indicated with a minus sign. Do not round intermediate calculations. Round your answer to the nearest whole number)Consider a hypothetical futures contract where the current price is $ 212. The initial margin requirement is $ 10 and the maintenance margin requirement is $ 8. You enter into long 20 contracts and meet all margin requirements, but do not withdraw any excess margin. B. Complete the table below and explain all deposited funds. Suppose the contract was purchased at the settlement price of that day, so there is no gain or loss at current market prices on the day of purchase. C. What is your total profit or loss by the end of Day 6?What is the appropriate risk-free rate on May 11, 2022 for an option that expires on Oct 20, 2022 if the T-bill with closest maturity is quoted as 3.65/3.44? a. What is the un-annualized discount rate? Round your answer to two decimals. b. What is the T-bill price? Round your answer to two decimals b . What is the approximate risk-free rate? % Round your answer to two decimals
- Demonstrate how a margin account operates for both the long and the short futures position using the following information ( you do not need to adjust the values given for contract size or number of contracts) The initial margin is R30 The initial future price is R100 On day 1 the price drops to R90 On day 2 the price rises to R95. Fill in the correct monetary values for the margin account values (a) through to (f) in your answer booklet.Take care to show the signs (negative and positive) of your cash flowsA STRIPS traded on May 1, 2022, matures in 18 years on May 1, 2040. Assuming a yield to maturity of 6.1 percent, what is the STRIPS price? Note: Use Excel to answer this question. Enter your answer as a percentage of par value. Round your answer to 4 decimal places. STRIPS priceJune 2021 Mexican peso futures contract has a price of $0.05197 per MXN. You believe the spot price in June will be $0.05831 per MXN. MXN500,000 is the contract size of one MXN contract. Required: What speculative position would you enter into to attempt to profit from your beliefs? Calculate your anticipated profits, assuming you take a position in three contracts. What is the size of your profit (loss) if the futures price is indeed an unbiased predictor of the future spot price and this price materializes?
- 8. On January 28, 2011 a T-bill was issued with a face value of $170000 and a maturity date of July 22, 2011. If it was purchased for $164862.17 on the date it was issued, what yield is the investor realizing?Suppose you sell six September 2020 palladium futures contracts this day at the last price of the day. Use Table 23.1. a. What will your profit or loss be if palladium prices turn out to be $2,034.50 per ounce at expiration? (Do not round intermediate calculations and enter your answer as a positive value rounded to 2 decimal places, e.g., 32.16.) b. What will your profit or loss be if palladium prices are $1,977.50 per ounce at expiration? (Do not round intermediate calculations and enter your answer as a positive value rounded to the nearest whole number, e.g., 32.) a. Loss b. Profit Answer is not complete. 6,200to-date with security updates, fixes, and Improvements, choose Check for Updates. A speculator has purchased United States dollar put options, with an exercise price of A$1.30 and a premium of A$0.05 per unit. (a) Calculate the break-even price. (b) Calculate the profit or loss of the option for the speculator if the spot rate at the time the speculator considers exercising the options is : (1) A$1.20 (2) A$1.28 (3) A$1.34 c) What is the maximum profit and maximum loss for the speculator? Focus