- You have to make a 90,000,000 payment in Japanese Yen on close of business day, Friday, January 18th. You decide to hedge your risk with the futures contracts. Assume you that you enter into the futures position at a close of day on Tuesday, January 15th. Futures and spot data are provided BELOW. Contract size is 12,500,000 yen.
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- Describe the position you decide to enter (long or short).
-
- Describe the contract (what month, and what quantity).
-
- Document the gain or loss due to marking to market every day that your position is open.
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- What is the total cost in US$ after you have closed out your futures positions, and made your payment?
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- What would have been the total cost in US$, if you had not hedged? Did you benefit from hedging?
-
- Repeat steps a) – e) assuming that you expect to receive a payment of 900,000 British pounds on close of business day, Friday, January 18th. Assume you that you enter into the futures position at a close of day on Tuesday, January 15th. Contract size is 62,500 British pounds.
Homework Answers
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You have to make a 90,000,000 payment in Japanese Yen on close
of business day, Friday,...
You have to make a 90,000,000 payment in Japanese Yen on close of business day, Friday,...
You have to make a 90,000,000 payment in Japanese Yen on close
of business day, Friday, January 18th. You decide to hedge your
risk with the futures contracts. Assume you that you enter into the
futures position at a close of day on Tuesday, January 15th.
Futures and spot data are provided in the file BELOW. Contract size
is 12,500,000 yen.
Describe the position you decide to enter (long or short).
Describe the contract (what month, and what quantity).
Document...
You have to make a 90,000,000 payment in Japanese Yen on close of business day, Friday,...
You have to make a
90,000,000 payment in Japanese Yen on close of business day,
Friday, January 17th. You decide to hedge your risk with the
futures contracts. Assume you that you enter into the futures
position at a close of day on Tuesday, January 14th. Futures and
spot data are provided in the file HW1_data.doc. Contract size is
12,500,000 yen.
Describe the position you decide to enter (long or short).
Describe the contract (what month, and what quantity).
Document...
Name Chapter 3 1) You observe a quotation of the Japanese yen (K) of $0.007. You...
Name Chapter 3 1) You observe a quotation of the Japanese yen (K) of $0.007. You are, however, interested in the number of yen per dollar. Thus, you calculate thequotation of /s a. direct; 142.86 b. indirect; 142.86 c. indirect; 150 d. direct; 150 e. indirect, 0 2) Which of the following is probably NOT appropriate for an MNC wishing to reduce its exposure to British pound payables? a. Purchase pounds forward b. Buy a pound futures contract c. Buy...
Use the accompanying chart of currency futures market activity, for Wednesday, December 30, 2010 to answer...
Use the accompanying chart of currency futures market activity,
for Wednesday, December 30, 2010 to answer this question. Of the
seven currency futures shown, using the March, 2011 contracts only,
assuming equal volatility for each currency, which one had the
highest fairly priced dollar value for its at the money 90 day
calls?
Currency Futures Trading Summary for Thursday, December 30,
2010
Japanese Yen (CME)-12,500,000; $ per 100% LIFETIME Open High Low Settle Chg High (▲ ▼) Low 1.0621 1.1021...
I need the answer to #2 listed above. This is the code I have come up...
I need the answer to #2 listed above. This is the code I have
come up with, and it is wrong. I am new to this and need help.
group by sust.cida Q2 (7 Points) Show customer id (CID) for customers who have spent 30,000 or more with the company in 2019. Money is considered "spent" when the entire work order is completed as recorded in workorder.completionDate. (Correct query will find customer 2). Use ONE SQL statement. select workarder.id from...
Refer to Table 10-6 Price quotes are stated in 1/64ths a. How many ExxonMobil October 2016...
Refer to Table 10-6 Price quotes are stated in 1/64ths a. How many ExxonMobil October 2016 $90.00 put options were outstanding at the open of trading on August 3, 2016? b. What was the closing price of a 10-year Treasury note December 13300 futures call option on August 3, 2016? c. What was the closing and dollar price of a December 2160 call option on the S&P 500 Stock Index futures contract on August 3. 2016? d. What was the...
Refer to the Mini-S&P contract in Figure 22.1. Assume the closing price for this day. a....
Refer to the Mini-S&P contract in Figure 22.1. Assume the
closing price for this day.
a. If the margin requirement is 29% of the
futures price times the contract multiplier of $50, how much must
you deposit with your broker to trade the December maturity
contract? (Round your answer to 2 decimal
places.)
b. If the December futures price were to
increase to 2,091.73, what percentage return would you earn on your
net investment if you entered the long side...
The assignment : Assignment You will be developing a speeding ticket fee calculator. This program will...
The assignment : Assignment You will be developing a speeding ticket fee calculator. This program will ask for a ticket file, which is produced by a central police database, and your program will output to a file. Furthermore, your program will restrict the output to the starting and ending dates given by the user. The ticket fee is calculated using four multipliers, depending on the type of road the ticket was issued: Interstate multiplier: 5.2252 Highway multiplier: 9.4412 Residential multiplier:...
Suppose you purchase a March 2017 oats futures contract on this day at the last price...
Suppose you purchase a March 2017 oats futures contract on this day at the last price of the day. Use Table 23.1 What will your profit or loss be if oats prices turn out to be $2.4713 per bushel at expiration? (Do not round intermediate calculations. Enter your answer as a positive value and round your answer to 2 decimal places, e.g., 32.16.) Loss TABLE 23.1 Sample Wall Street Journal Futures Price Quotations Chg Open interest -0.0125 -0.0130 6 72...
Suppose you sell six August 2017 gold futures contracts on this day, at the last price...
Suppose you sell six August 2017 gold futures contracts on this day, at the last price of the day. Use Table 23.1 a. What will your profit or loss be if gold prices turn out to be $1,249.70 per ounce at expiration? (Do not round intermediate calculations. Enter your answer as a positive value rounded to the nearest whole number, e.g., 32.) b. What will your profit or loss be if gold prices are $1,235.90 per ounce at expiration? (Do...
You have to make a 90,000,000 payment in Japanese Yen on close
of business day, Friday, January 18th. You decide to hedge your
risk with the futures contracts. Assume you that you enter into the
futures position at a close of day on Tuesday, January 15th.
Futures and spot data are provided in the file BELOW. Contract size
is 12,500,000 yen.
Describe the position you decide to enter (long or short).
Describe the contract (what month, and what quantity).
Document...
You have to make a
90,000,000 payment in Japanese Yen on close of business day,
Friday, January 17th. You decide to hedge your risk with the
futures contracts. Assume you that you enter into the futures
position at a close of day on Tuesday, January 14th. Futures and
spot data are provided in the file HW1_data.doc. Contract size is
12,500,000 yen.
Describe the position you decide to enter (long or short).
Describe the contract (what month, and what quantity).
Document...
Name Chapter 3 1) You observe a quotation of the Japanese yen (K) of $0.007. You are, however, interested in the number of yen per dollar. Thus, you calculate thequotation of /s a. direct; 142.86 b. indirect; 142.86 c. indirect; 150 d. direct; 150 e. indirect, 0 2) Which of the following is probably NOT appropriate for an MNC wishing to reduce its exposure to British pound payables? a. Purchase pounds forward b. Buy a pound futures contract c. Buy...
Use the accompanying chart of currency futures market activity,
for Wednesday, December 30, 2010 to answer this question. Of the
seven currency futures shown, using the March, 2011 contracts only,
assuming equal volatility for each currency, which one had the
highest fairly priced dollar value for its at the money 90 day
calls?
Currency Futures Trading Summary for Thursday, December 30,
2010
Japanese Yen (CME)-12,500,000; $ per 100% LIFETIME Open High Low Settle Chg High (▲ ▼) Low 1.0621 1.1021...
I need the answer to #2 listed above. This is the code I have
come up with, and it is wrong. I am new to this and need help.
group by sust.cida Q2 (7 Points) Show customer id (CID) for customers who have spent 30,000 or more with the company in 2019. Money is considered "spent" when the entire work order is completed as recorded in workorder.completionDate. (Correct query will find customer 2). Use ONE SQL statement. select workarder.id from...
Refer to Table 10-6 Price quotes are stated in 1/64ths a. How many ExxonMobil October 2016 $90.00 put options were outstanding at the open of trading on August 3, 2016? b. What was the closing price of a 10-year Treasury note December 13300 futures call option on August 3, 2016? c. What was the closing and dollar price of a December 2160 call option on the S&P 500 Stock Index futures contract on August 3. 2016? d. What was the...
Refer to the Mini-S&P contract in Figure 22.1. Assume the
closing price for this day.
a. If the margin requirement is 29% of the
futures price times the contract multiplier of $50, how much must
you deposit with your broker to trade the December maturity
contract? (Round your answer to 2 decimal
places.)
b. If the December futures price were to
increase to 2,091.73, what percentage return would you earn on your
net investment if you entered the long side...
Suppose you purchase a March 2017 oats futures contract on this day at the last price of the day. Use Table 23.1 What will your profit or loss be if oats prices turn out to be $2.4713 per bushel at expiration? (Do not round intermediate calculations. Enter your answer as a positive value and round your answer to 2 decimal places, e.g., 32.16.) Loss TABLE 23.1 Sample Wall Street Journal Futures Price Quotations Chg Open interest -0.0125 -0.0130 6 72...
Suppose you sell six August 2017 gold futures contracts on this day, at the last price of the day. Use Table 23.1 a. What will your profit or loss be if gold prices turn out to be $1,249.70 per ounce at expiration? (Do not round intermediate calculations. Enter your answer as a positive value rounded to the nearest whole number, e.g., 32.) b. What will your profit or loss be if gold prices are $1,235.90 per ounce at expiration? (Do...
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