Already have an account? Get multiple benefits of using own account!
Login in your account..!
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!
(a) The position of an agency that sells a callable coupon bond. We supposed that coupon bond has a maturity of 3 years and is callable only at the second year.
(b) The market thinks that the short term volatility reduces as FED's plans become clearer. The long term volatilities may perhaps increase because mortgage players hedge as FED cuts interest rates.
(c) A straddle is a long call as well as long put at the same strike price. The swaption long straddle is a long position in the swaptions which are described above. Its cash flow is displayed below
Therefore the traders take a long straddle position on the long dated swaptions and short straddle position on the short dated swaptions.
(d) If expectations are realized all positions would be in the money.
Trader has supposed a short position on short term volatility and short term volatility is lower. When this position is stopped it would be in the money. The trader as well has assumed a long position on the long term volatility and the long term volatility is higher therefore this position is in the money as well. Consequently the positions can simply be unwound.
(e) The investor is able to make money only if long term volatility increases in the case of CSFB. Where like in the case of Lehman even if long term volatility doesn't increase or even it reduce earnings from short-term volatility position would offset the losses.
Q. Calculation of WMCC? The calculation of WMCC requires several steps to be taken and is subject to the following assumptions: 1) The WMCC is calculated on the basis of market
Imagine you have been allocated $100,000 which is to be invested in 8 companies listed on the Australian Stock Exchange (ASX). You are required to have a balanced portfolio betwee
Honey Well company is contemplating to liberalize its collection effort. It''s present sales are 1000000 and it''s average collection period is 30 days, it''s expected variable c
Business forecasting menaing
Unity of Command Unity of command is the principle in which each subordinate should be responsible to only one manager.
Question 1 What is over capitalization? How do we know over capitalization has occurred? Question 2 Explain permanent and temporary working capital Question 3 A. What ar
These debentures are backed by integrity and creditworthiness. They do not have any specific collateral backing. Therefore, the ability of the issuing GSE to gene
Settlement Mechanism: Nifty index futures and option contracts are cash settled. All CMs are required to open a separate bank account with NSCCL designated clearing banks. T
Q. Merits of accept-reject criteria? Merits of ARR:- (i) Simple: - ARR method is very simple to understand and use. (ii) Complete life time of the project is considered:
Franchise (licensing) - Granting or licensing of the right to use systems, expertise,brandsknow how etc. to another organisation, generally in return for a profit share
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!
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd