Any decrease in value in underlying asset

Assignment Help Financial Management
Reference no: EM131353206

An investor who goes long in a futures contract will _____ any increase in value of the underlying asset and will _____ any decrease in value in the underlying asset.

A. pay; pay

B. pay; receive

C. receive; pay

D. receive; receive

Reference no: EM131353206

Questions Cloud

What is its current yield : A bond with a par value of $1000 and a semi annual coupon has a nominal yield to maturity of 5.3% and a current price of $920. If the bond has 6 years to maturity, what is its current yield?
Construct an aon network for these activities : The activities needed to build a prototype laser scanning machine at Dave Fletcher Corp. are listed in the following table. Construct an AON network for these activities
What are the main ideas in steinbergs article : Explain what Zewei's article from the week 4 reading was all about. Be sure to identify the thesis and conclusions. What are the main ideas in Steinberg's article? Based on the Cragg, Arnold, and Muchlinski article from week 6, when and why did "bu..
Combination of health care : Clearly explain why health outcome is so much more than a combination of health care, individual behaviors, and/or genetics?
Any decrease in value in underlying asset : An investor who goes long in a futures contract will _____ any increase in value of the underlying asset and will _____ any decrease in value in the underlying asset.
Bacterial infectious factors in order of virulence : 1. What are the bacterial infectious factors in order of virulence? 2. What is different between conjugation by F' and specialized transduction?
Unadjusted historical cost method is currently required : The following is true about financial reporting alternatives: The current value method is currently required under GAAP. The unadjusted historical cost method is currently required by GAAP.
What is the project duration : The following is a table of activities associated with a project at Rafay Ishfaq's software firm in Chicago, their durations, and what activities each must precede: Define the critical path, listing all critical activities in chronological order. W..
What is the projects financial break-even point in units : Lindow's Limes invested $600,000 to develop a new, home seized lime juice machine. The variable costs were $30 per unit and fixed costs were $100,000. This project is expected to take 4 years to become marketable. The juice machines are expected to s..

Reviews

Write a Review

Financial Management Questions & Answers

  Firm does not pay dividend-compute the value of stock

A firm does not pay a dividend. It is expected to pay its first dividend of $0.18 per share in three years. This dividend will grow at 12 percent indefinitely. Use a 13 percent discount rate. Compute the value of this stock.

  What is difference between asset purchase and stock purchase

What is the difference between an asset purchase and a stock purchase? What is the difference between an operational restructuring and a financial restructuring?

  Average cost of capital for use in capital budgeting

Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC) for use in capital budgeting?

  What is yield to maturity of the bond

A two- year bond with par value $1,000 making annual coupon payments of $92 is priced at $1,000. What is the yield to maturity of the bond?

  The correlation between the two assets

You are going to invest in Asset J and Asset S. Asset J has an expected return of 11.4 percent and a standard deviation of 52.4 percent. Asset S has an expected return of 8.4 percent and a standard deviation of 17.4 percent. The correlation between t..

  What is the intrinsic value of the call

A particular call is the option to buy stock at $25. It expires in six months and currently sells for $3 when the price of the stock is $27. What is the intrinsic value of the call? Round your answer to the nearest dollar. If an individual buys the s..

  Determine the formula value of the rights

If the market price of Seven Springs common stock increases to $30 per share, determine the formula value of the rights (rights-on case).

  Initial margin requirements

Ted’s Corporation stock is selling for $50 per share. Ted pays no dividends. Initial margin requirements are 50%, and maintenance margin requirements are 30%. You can borrow from your broker at 7% per year on margin debt, but the broker pays nothing ..

  Return to equal the quoted yield-to-maturity

For an investor's holding period return to equal the quoted yield-to-maturity, which one of the following must be true?

  Portfolio consisting of risk free asset and market portfolio

Assume the market has a Treynor Index of 4.00%. What is the treynor index of your portfolio consisting of the risk free asset and the market portfolio weight on the market is 17% (and the balance is in the risk free security)? the Treynor Index of yo..

  Forecast method advantages and disadvantages respectively

From the news, you identified a trend that Mexican nominal interest rates have been substantially higher than U.S. nominal interest rates in recent years. According to Fish Effect, what do you expect inflation gap between two country’s inflation rate..

  At what price would it sell without the call feature

The problem refers to the bonds of The Apollo Corporation, all of which have a call feature. The call feature allows Apollo to pay off bonds anytime after the first 15 years, but requires that bondholders be compensated with an extra year's interest ..

Free Assignment Quote

Assured A++ Grade

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