How are the hibor, hsi and hsi futures related, Financial Management

Assignment Help:

Q. How are the HIBOR, HSI and HSI futures related?

The HIBOR and HSI are contrariwise related. So futures on HIBOR and HSI are as well inversely related.

1129_How are the HIBOR, HSI and HSI futures related.png

647_How are the HIBOR, HSI and HSI futures related1.png

Display the position explicitly

Example: I borrow 7800000 HKD at time t = t₀ at an interest rate r_t0.

After one year I pay back 7800000(1 + rt_o ).

At t₀ I exchange these HKD into USD1000000. These I deposit at the risk free rate R_to .

I anticipate that The HKD to depreciate 30% during the same time period.

My expected profit is

1136_How are the HIBOR, HSI and HSI futures related2.png

where the e_to is the pegged exchange rate 7.8.

Related Discussions:- How are the hibor, hsi and hsi futures related

Working capital managment policies, types of working managment policies

types of working managment policies

Valuation and exit - hedge fund, Valuation and Exit Valuation: The Net ...

Valuation and Exit Valuation: The Net Asset Value is used as a base for ascertaining the prices applicable to investor subscriptions and redemptions. Fund administrator perform

Micro/Macro Question, You have been hired as an economic advisor to the Sou...

You have been hired as an economic advisor to the Southeastern Conference. As your first assignment they have asked you to identify three microeconomic and three macroeconomic issu

Breaks in specific cost of capital, Breaks in Specific Cost of Capital: Th...

Breaks in Specific Cost of Capital: The specific costs of capital may also be affected by the amount of finance the firm wants to raise. As the amount of financing increases, the

Planning to achieve budget goals, Planning to Achieve Budget Goals: It ...

Planning to Achieve Budget Goals: It is insufficient for an organisation or a project team to simply set budget goals and expect management and employees to work in the same ma

Documenting the accounting system, Documenting the accounting system Th...

Documenting the accounting system There are 3 methods generally used to document the clients system. Narrative notes: Written description of the system Advantages:- C

Working capital management, I need a report on Working Capital Management. ...

I need a report on Working Capital Management. Can you please assist me for Working Capital Management report for about 2500 words?

Treasury notes or t-notes, Treasury Notes or T-notes are the securiti...

Treasury Notes or T-notes are the securities issued with maturities of more than one year and but not more than 10 years. All these securities are coupon securiti

Prepayments, Principal repayment before the scheduled date is calle...

Principal repayment before the scheduled date is called a prepayment. Every individual borrower normally has the option to pay off all or part of their loan

Sensitivity analysis, Sensitivity Analysis A test of an organizations p...

Sensitivity Analysis A test of an organizations performance projections based on varying the key assumptions which is used for forecast performance.

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages