What is the gain or loss on the position

Assignment Help Finance Basics
Reference no: EM131129415

Consider a put contract on a T-bond with an exercise price of 101 12/32. The contract represents $100,000 of bond principal and had a premium of $750. The actual T-bond price falls to 98 16/32 at the expiration. What is the gain or loss on the position?

Reference no: EM131129415

Questions Cloud

If markham uses the effective interest method in amortizing : If Markham uses the effective-interest method in amortizing the premium, will the annual interest expense increase or decrease over the life of the bonds? Explain.
How can you arbitrage this situation : Consider a put contract on a T-bond with an exercise price of 101 12/32. The contract represents $100,000 of bond principal and has a premium of $750. The actual T-bond price is currently 100 1/32. How can you arbitrage this situation?
When you write for a particular target reader group : When you write for a particular target reader group, do you not have to consider the age, economic level, educational level, and expectations of that group?
What is the ph of a buffer : What is the pH of a buffer prepared by mixing equal volumes of 0.1 M KH2PO4 and 0.01 M K2HPO4? - Using Henderson-Hasselbalch Equation.
What is the gain or loss on the position : Consider a put contract on a T-bond with an exercise price of 101 12/32. The contract represents $100,000 of bond principal and had a premium of $750. The actual T-bond price falls to 98 16/32 at the expiration. What is the gain or loss on the positi..
Laura hiatt is discussing the advantages of the effective : Laura Hiatt is discussing the advantages of the effective interest method of bond amortization with her accounting staff. What do you think Laura is saying?
Discuss some issue of local concern : Discuss some issue of local, national, or international concern and its importance to you. What are the challenges it raises, problems to be addressed, and hopeful outcomes?
The current spot and futures exchange rates : A bank customer will be going to London in June to purchase £100,000 in new inventory. The current spot and futures exchange rates.
Define flow boundaries and map the dfd into a software : Define flow boundaries and map the DFD into a software architecture using the technique described in Section 9.6.1.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is a miss with the claim the value of a stock is the

what is a miss with the claim the value of a stock is the discounted value of expected future cash

  Find out the all taxes of shown query

Assume that COGS is always 70% of Sales, Interest Expense is always 10% of the previous years long term debt, Depreciation is always 20% of the previous years Net Fixed Assets, and taxes are always 40% of EBT.

  What is the increnental cash flow related to working capital

What is the increnental cash flow related to working capital when the store is opened? (Enter negative using a negative sign).

  Genesisrsquo newly established operations management team

genesisrsquo newly established operations management team decided to seek outside assistance in developing a long-term

  You are considering an investment in a aaa-rated us

you are considering an investment in a aaa-rated u.s. corporate bond but you are not sure what rate of interest it

  Time value of money paper

Make a 700-1,050-word paper in which you discuss how annuities affect TVM problems and investment outcomes. In your paper, be sure to address the impact of the following items on TVM:

  Explain why verizon has always had higher debt

Please describe the internet statement "Verizon has always had higher debt than some of its peers. There was some discussion about this inside the industry few years ago when they were deploying their IPTV services (FiOS).

  Calculate the basic and diluted eps for 2013

Net Income: $1,200,000 & tax rate is 40%. Calculate the basic and diluted EPS for 2013. Are there any dilutions, if any, in this equity structure?

  What are the advantages and disadvantages to a firm

What are the advantages and disadvantages to a firm of financial hedging of its operating exposure compared to operational hedges (such as relocating its manufacturing site)?

  The new asset will cost 75000 and will also be depreciated

a corporation has decided to replace an exisiting asset with a newer model. two years ago the existing asset

  What will bling diamond cahs dividends be in seven years

Thereafter, dividends will grow at 8% per year. What will Bling Diamond's cahs dividends be in seven years?

  What would be the monthly payments on the new loan

What would be the monthly payments on the new loan? d. Should you refinance today, if the new loan is expected to be outstanding for 5 years?

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