What is the value of an fra

Reference no: EM13273579

The 12-month, 15-month, 18-month zero rates are 4.5%, 4.6%, 4.7% with continuous compounding. What is the value of an FRA that enables the holder to earn 6.1% (with semiannual compounding) for a 3-month period starting in 1 year on a principal of $1,000,000?

Reference no: EM13273579

Questions Cloud

What is the value of the forward contract : A 2-year long forward contract on a non-dividend-paying stock is entered into when the stock price is $138 and the risk-free interest rate is 9.3% per annum with continuous compounding. 1 year later, the price of the stock is $146 and the risk-fre..

Explain chromatographic analysis : A solution containing 3.45 mM of p-xylene (analyte) and 6.86 mM of nonane (standard) gave peak areas of 13587 and 14769 respectively, in a chromatographic analysis. then 1.5 mL of 6.86mM nonane solution was added to 5 mL of an unknown sample conta..

What is the amplitude of the current : A charged capacitor is connected to an ideal inductor. At time t = 0, the charge on the capacitor is equal to 6.00 ÂµC. What is the amplitude of the current at that same instant

Calculate the option profit to the trader : At the expiration, the stock price becomes $18.99. Calculate the option profit to the trader.

What is the value of an fra : The 12-month, 15-month, 18-month zero rates are 4.5%, 4.6%, 4.7% with continuous compounding. What is the value of an FRA that enables the holder to earn 6.1% (with semiannual compounding) for a 3-month period starting in 1 year on a principal of ..

Write a basic matlab code that allows the user to play : All the script needs to do is make a two 10 by 10 grids, one for the user, one for the computer. Allow the user to choose where to place their ships, and in which direction. Then have the computer randomly place its ships.

Describe compound y contains only carbon and hydrogen : Compound Y contains only carbon, hydrogen, and oxygen. When a 1.000-gram sample of Compound Y is subjected to combustion analysis, 2.432 grams of CO2 and 0.574 grams of H2O are produced. Determine the empirical formula of Compound Y.

What is the net cash flow of the swap contract : Suppose the 6-m LIBOR rates were 5.7% on 6/1/2013 and 6% on 12/1/2013. What is the net cash flow of the swap contract on 12/1/2013?

Explain the importance of the house of refuge : Explain the importance of the House of Refuge, The Lyman School for Boys, and the Cottage Reform School.

User Account

All Pages