Difference between the profit for a and the profit for b

Reference no: EM132075950

Question: The S&R index currently has a price of 1000, and it doesn't pay dividends. The annual force of interest is 4.94%. A buys the index and B enters a forward purchase agreement. What is the difference between the profit for A and the profit for B if the spot price of the S&R index is 1020 at expiration in 6 months?

Reference no: EM132075950

Questions Cloud

The creation of sequence and communication diagrams : what guidelines should be followed when creating or drawing a sequence diagram?

Relevant common law and equity principles operating : Answer the following questions with reference to the relevant common law and equity principles operating in Australia concerning contracts

How many flights in a day must national airlines operate : How many flights in a day must National Airlines operate to make 25% profit margin if it expects the average load factor

What is the present value of discounted back : What's the present value of $1,500 discounted back 5 years if the appropriate interest rate is 6%, compounded semiannually?

Difference between the profit for a and the profit for b : The S&R index currently has a price of 1000, and it doesn't pay dividends. The annual force of interest is 4.94%. A buys the index and B enters a forward.

What is the use of the variable classpath : Write a method code defined by yourself for the sum of 3 numbers and that outputs the value. Write only the code of the Method.

How much of these expenses can jordan deduct : Jordan took a business trip from New York to Denver. She incurred the following expenses: Meals 975. How much of these expenses can Jordan deduct

Find the taxable equivalent yield on a municipal bond : What's the taxable equivalent yield on a municipal bond with a yield to maturity of 4.7 percent for an investor in the 28 percent marginal tax bracket?

Create a test driver that shows that your method performs : This method should return the value 0 if this date (the date of the object upon which the method is invoked) is equal to the argument date;

User Account

All Pages