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- 25000kg of copper company want to purchase find the future hedging?
May-08 May-09
Spot 4.00 4.20
futures 3.80 4.20
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- Q1-11 Suppose that a speculator notes that the current 3-month forward rate on the euro is $1.26 and the speculator expects that, in 3 months, the euro will have a value of $1.30. In this situation, the speculator would _______ euros on the forward market, and this activity ______ for the speculator. a. buy / involves risk b. buy / involves no possible risk c. sell / involves risk d. sell / involves no possible riskSuppose today is December 4, 2020, and your firm produces breakfast cereal and needs 160,000 bushels of corn in March 2021 for an upcoming promotion. You would like to lock in your costs today because you are concerned that corn prices might go up between now and March. Use Table 25.2 a. What is the total price you are locking in for the 160,000 bushels of corn based on the day's closing price? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. Suppose corn prices are $4.66 per bushel in March. What is the profit or loss on your futures position? (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. Total costIRR 1) Nominal Value: N= |= Emission Date Valuation Date: New Price: What is the new IIR? 2) Nominal Value: N= |= Emission Date Valuation Date: New Price: What is the new IIR? NPV 3) Par Value N= |= Emission Date: Buy on: Opportunity Rate What is the new NPV? $ 3,600,000 2 years 10% N.A.Q. 7/5/2023 8/5/2024 $ 3,550,000 XXX % EA ? $ 202,000 3 years 18% N.A. per year 5/15/2023 6/15/2024 $ 201,500 XXX % EA ? $ 100,000,000 2 years 15% N.A. Semi-annual 8/23/2024 4/23/2025 13% EA $$$?
- 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)Market observes the “exchange rates” as of today:($1/$0)=0.95 , ($2/$0)=0.87 1. What is the implied interest rate between time t=0 and t=2 ? 2. Now there is a project with three certain cashflows:CF0=−$10MMCF1=$5MMCF2=$7MMWhat is NPV0? 3. How much is CF1 worth at t=2?Q1 A short forward contract on a commodity that was negotiated some time ago will expire in 8 months and has a delivery price of $44. The current spot price of the commodity is $52. The risk-free interest rate (with continuous compounding) is 0.06. What is the value of the short forward contract? Q2 Alrajhi Bank plans to pay a dividend of 3 per share both 3 and 5 from today. Alrajhi share price today is 78 SAR and the continuously compounded interest rate is 0.07. What is the price of a 9-month forward contract? Q3 An investor shorts 122 shares when the share price is $94 and closes out the position 4 months later when the share price is $98. The shares pay a dividend of $6 per share during the 4 months. How much does the investor gain or lose?
- D3 show the solution in details Use the binomial option pricing model to find the value of a call option on £10,000 with a strike price of €12,500. The current exchange rate is €1.50/£1.00 and in the next period the exchange rate can increase to €2.40/£ or decrease to €0.9375/€1.00 (i.e. u = 1.6 and d = 1/u = 0.625). The current interest rates are i€ = 3% and are i£ = 4%. Choose the answer closest to yours. the answer is A) €3,275What is the result in B12? A 1 Settlement Date 2 Maturity Date 3 First Call Date 4 Time to Maturity (Years) 5 Coupon Rate 6 Required Return 7 Frequency 8 9 10 Basis 11 Value 12 Yield to Call 12 Face Value Call Price O a. 7.39% O b. 12.68% O c. 10.05% O d. 5.58% B 10/23/2020 10/23/2030 10/23/2025 $ $ 10 7.00% 10.00% 2 1,000 1,035 0 $813.07 ?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
- Norwegian Krone (CME) - 2,000,000 Kroner; $ per contract. MONTH CHART LAST CHANGE PRIOR SETTLE OPEN HIGH LOW VOLUME JUN 2023 NOKM3 0.09586 -0.00064 (-0.66%) 0.09650 0.09662 0.09662 0.09581 67 3. Given the above information, calculate the dollar value of a Norwegian Krone SEP 2022 futures contract. 4. You hold securities in Australia valued at AUD (Australian Dollar) 55 million. How many SEP AUD futures should be bought or sold to hedge the foreign exchange risk. SEP AUD futures contracts (AUD 100,000 per contract) settled most recently at AUD 1.4202/$.The stock index future contract involves buying and selling the stock index for a specified price at a specified date. How much will a contract price be if it involves the S&P SmallCap index with a current value of P200 times the index for 1700 points?* a. P340,000 b. P314,000 c. P8,500 d. P342,00010. An American investor invested IS Bank A.Ş. (one of the Borsa Istanbul stock) in 03/01/2022. The investor liquidated its position (sold the stocks) in 31/12/2022. If exchange rate and stock prices as following, what is the investors return from this investment; 03/01/2022 31/12/2022 USD/TRY 13.60 18.70 ISCTR 3.20 13.01