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.
Pyrolysis Pyrolysis is the procedure of depositing a ceramic on a heated substrate. The process is used to deposit coating or generate thin walled components of graphite or si
Determine footing moment analysis for given demonstration. Ans: Assuming effective depth as d, Bending moment M at the face of column M = ((273.60 x 2.80 x (1.40 - 0
Explain Cutting Speed - Cutting Parameters It is relative speed (V 1 ) between wheel and the Work piece. It is expressed in m/sec. V=Cutting speed=V 1 =
what is shear stress
Need someone to help in doing a connecting rod for an engine by using abaqus software version12 or 6.11?
A shaft transmits 200kw at 180rev/min between a prime mover and a water pump. calculate the strain energy stored perunit length of the shaft and hence the angle of twist in the sha
Grease Gun: A grease gun is shown in Figure. This is used to supply semi-solid lubricant (grease) for chassis lubrication. Figure : Grease Gun
Rankine cycle - Thermodynamics: The major problems of Carnot cycle is compressing very wet steam mixture from the condenser pressure up to boiler pressure. The trouble can be
CO 2 Welding Gun / Torch The torch assembly consists of conduits to supply the consumable wire electrode and the shielding gas into the welding gun. The torch assembly may als
Illustrate the GKS system The user communicates with the graphic system via his program. The GKS system is embedded in the user program by an application-oriented layer and a l
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