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!
Currency Bull Spread and Bear Spread:
A currency bull spread is constructed by buying a call option for a particular underlying currency and simultaneously writing a call option for the same currency with a higher strike price. Suppose that a spreader buys a call option on Australian dollars with a strike price $0.64 and a call premium of $0.019 and writes a call option on the same Australian dollars but with a strike price of $0.65 and a premium of $0.015. An option contract on Australian dollars consists of 50,000 units.
Required:
(a) Calculate the net profit (loss) for the bull spreader if the Australian dollar appreciates to $0.645 at the option expiration.
(b) Calculate the net profit (loss) for the bull spreader if the Australian dollar appreciates to $0.70 at the option expiration. Do you think a further appreciation of A$ would lead a higher profit for the spreader?
(c) Draw a contingency graph for the currency bull spread assuming that possible exchange rate will be any of the following: $0.60, $0.64, $0.645, $0.65, and $0.70.
(d) Repeat (c) assuming that the spreader writes the $0.64 option and buys the $0.65 option. Note that it is the case of currency bear spread.
Note: A currency bull spread can be constructed by a combination of put options too. To construct a put bull spread, the spreader would buy a put option with a lower strike price and write a put option with a higher strike price.
Short Circuiting Transfer The short circuiting transfer occurs when the welding current and the arc voltage is low. Metal is transferred from the electrode to the work only wh
what are the limitations of first law of thermodynamics?
Motion of two bodies - Smooth surface and smooth pulley: THE HORIZONTAL SURFACE IS SMOOTH AND STRING IS PASSING OVER SMOOTH PULLEY: Figure shows two weights W 1 and W 2 c
Q. Corrosion resistance of tantalum? Tantalum is readily attacked by strong alkalis, even at room temperature, and therefore, is not suitable for use in processes where the pH
(a) How is the cooling system useful in two wheelers? (b) Which cooling system is mainly used in two wheelers? Describe working of that cooling system. (c) Describe the worki
what are the tests to carried out after mockup preparation
Q. What do you mean by Compression moulding? In compression molding, a material normally in power or perform shape , is loaded directly into the hot die cavity, pressure from
Cam: This is an integral part of camshaft. A cam is designed in such a way as to open or close the valves at the correct timing and keep them open for the necessary duration.
WELD PREPARATION: Joint Tolerance & Cleaning Joint Tolerance The allowable tolerance of joint dimensions depends upon whether the welding is to be done manually or
how do you differentiate between wet steam and dry steam?
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd