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!
Q1) The 12-month, 15-month, 18-month zero rates are 7.4%, 7.5%, 7.6% with continuous compounding. What is the value of an FRA that enables the holder to earn 8.6% (with semiannual compounding) for a 6-month period starting in one year on a principal of $1,000,000?Q2) A quoted price of a 6% semiannual T-bond that matures on 7/15/2015 is 95-3. Today is 3/15/2010. What is the cash price? Round the number to the nearest 2 decimal points.Q3) The price of a stock is $36 and the price of a three-month call option on the stock with a $36 strike is $3.60. Suppose a trader has $3,600 to invest and is trying to choose between buying 1,000 options (10 contracts) or 100 shares of stock. How high does the stock price have to rise for an investment in options to be as profitable as an investment in the stock?Q4) A company enters into a long futures contract to buy 1,000 barrels of oil for $62 per barrel. The initial margin is $10,000 and the maintenance margin is $4,000. What oil futures price will trigger a margin call?Q5) An interest rate is 18% per annum when expressed with semiannual compounding. What is the equivalent rate with continuous compounding? Report the answer in % and round the number to the nearest 2 decimal percentage points such as 5.75%. Q6) An interest rate is 12.5% per annum expressed with continuous compounding. What is the equivalent rate with semiannual compounding? Q7) A trader sells 100 European put options (1 contract) with a strike price of $48 and a time to maturity of six months. The price received for each option is $3. The price of the underlying asset is $40 in six months. What is the trader's gain or loss? If loss, report a negative number.Q8) On 3/5/2012, you entered into a semiannual interest rate swap contract, where you pay a fixed rate of 4% per annum and receive LIBOR on a principal amount of $1,000,000. Suppose the 6-m LIBOR rates were 5.00% on 3/5/2012 and 5.50% on 9/5/2012. What is the net cash flow of the swap contract on 9/5/2012?Q9) A company has a $33 million stock portfolio with a beta of 1.2. The S&P index futures price is currently standing at 1000. Futures contracts on $250 times the index can be traded. How many contracts is needed to reduce the beta to 0.8? If a short position is needed, report a negative number. Q10) The three year zero rate is 5.5% and the four year zero rate is 6.7% (both continuously compounded). What is the forward rate (continuously compounded) for the fourth year? Report in % and round the number to the nearest 2 decimal percentage points such as 5.78%. Q11) The spot price of an investment asset is $33 and the risk-free rate for all maturities (with continuous compounding) is 8%. The asset provides $3.4 income at the end of the second year. What is the three-year forward price? Required minimum-2 page
Marpor Industries has no debt and expects to generate free cash flows of 16 million dollar every year. Marpor believes that if it permanently increases its level of debt to 40 million dollar,
What balance is needed to earn $56,000 annually from the interest? Assume that the interest rate you need is as given in the problem.
Explain the concepts of present value and discuss your interpretation of their value as assessment tools for accountant or operator (include an example).
Deriving cash collected and cash paid using financial ratios - Briefly describe why this outflow of cash for both investing and financing activities actually is a positive sign for the Company and its stockholders.
When Federal Reserve notifies banks that they should hold fifteen cents for every dollar that is deposited, it is controlling the money supply by using which of following tools?
Discuss ways in which an investor can take advantage of the flat or inverted yield curve. Provide three current, specific real-world examples in your discussion.
Suppose you want to compare the earnings from two different legal forms for a company, Corporate and Proprietor. Your pre-tax income is $500,000 in both. However there is a difference in the taxes you pay.
You charged $1,000 on your credit card for Christmas presents. Your credit card firm charges you 16 percent yearly interest, compounded monthly.
Swannee Resorts is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight line method over the project's 3 year life, with zero salvage value.
A company reports book value of shareholders equity of $850 million with 25 million shares outstanding. Those shares trade at 45 dollar each in the stock market.
Assuming a company does not have enough excess retained earnings to fund future projects that have positive NPV's, they would have to sell debt or issue new capital. Issuing new capital is often thought of as a negative sign to current stock holders,..
EMC Company has never paid a dividend. EMC current free cash flow of $400,000 is expected to increase at a constant rate of 5 percent. The weighted average cost of capital is 12%.
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