Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
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!
Generous Dynamics is planning on buying 3000 ounces of gold in six months. The correlation of the six-month change in the spot and futures price is . 95. The standard deviation of six-month change in spot and futures price are 14 percent and 33 percent, respectively. Futures contract size is 1000 ounces. How many contracts should GD buy or sell to hedge the future purchase?
a. Sell 1.2091 b. Sell 1.2727 c. Sell 6.7178 d. Buy 6.7178 e. Buy 1.2091
What is the value of a 9-month call with a strike price of $55 given the Black-Scholes option pricing model and the following information?
Home Depot Inc. (HD) had 1.70 billion shares of common stock outstanding in 2008, whereas Lowes Companies,. Inc. (LOW) had 1.46 billion shares outstanding. Assuming Home Depot's 2008 interest expense is $696 million Lowes' interest expense is $239 mi..
Tanner Tavern writes four checks a day for an average amount of $5,400 each. These checks generally clear the bank four days after they are written. In addition, the firm generally receives and deposits checks amounting to $18,700 each day. All depos..
Changes in Growth and Stock Valuation Consider a firm that had been priced using a 6 percent growth rate and a 9 percent required rate. The firm recently paid a $.80 dividend. The firm has just announced that because of a new joint venture, it will l..
You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $25,000, has a six-year life, and has an annual OCF (after tax) of -$5,000 per year. The Keebler CookieMunster costs $40,000, has a seven-year life, and has an annual OCF (..
A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.3%. What is the standard devia..
When selecting one of two projects, managers should only consider the total cash flow from each. Most investors prefer greater risk over less risk. Accountants record sales and expenses after the related cash flows occur.
A big pharmaceutical? company, DRIg, has just announced a potential cure for cancer. The stock price increased from $2 to $82 in one day. A friend calls to tell you that he owns DRIg. You proudly reply that you? do, too. On the announcement your over..
The company "Accusoft Systems" offers business owners a software package that maintains the records of many accounting functions from sales bills through bank transactions. The site license costs $ 22,000 per installation concept and involves a fee o..
XY Windows has a projected sales volume of $2864 for the second year of a proposed expansion project. Costs normally run 60% of sales, (or about $1718.40 in this case) the depreciation expense will be $90 and tax rate is 34%. What is operating cash f..
Explain what is meant by an index being price weighted. In a price-weighted average, would you expect a $10 stock or a $50 stock to be more important? Why?
Upon seeing such a high IRR, the mayor of Detroit seeks a second opinion and hires Dan as a consultant. Dan is an aquarium expert and believes that Detroit's aquarium will only generate $1 million in cash flows for the first three years in operation,..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd