Briefly describe 3 Advantages of using Financial Futures within a stock- or bond-based portfolio
1. High Liquidity: futures market offers high liquidity This allows traders to enter and exit market whenever they feel so.
2. Hedging against risk: If we want to hedge our position on stock we may enter a future. For eg if we expect the price to go down in one month we may hedge that position by going short on futures at the expected price
3. Pricing: Pricing is based on cost of carry model and is easily determinable.
Briefly describe 3 Advantages of using Financial Futures within a stock- or bond-based portfolio
Assignment 2: Portfolio revisions using bond futures contracts. Please write your name here-------- 1. Consider the following portfolio and revise it with bond futures contracts. Stock 4,000,000 Bonds 4,000,000 Cash 4, 000 000 Total 12,000,000 Treasury bonds futures are priced at 162-20. You decide to go long 12 bond futures contracts. T. bond futures are based on $100,000 par value.
You own a bond portfolio and decide to hedge using futures on 10 year Treasury notes. The bond portfolio has a PVBP = $764.9 and the futures contract has a PVBP = $193.1. What is the hedge ratio needed? Enter your result as a positive number with one decimal place (do not round to the nearest integer).
Describe advantages of using ETFs in portfolio management. What were some policy responses of the FED during the 2008 financial crisis?
You own a bond portfolio and decide to hedge using futures on 10 year Treasury notes. The bond portfolio has a PVBP = $764.9 and the futures contract has a PVBP = $193.1. What is the hedge ratio needed? Enter your result as a positive number with one decimal place (do not round to the nearest integer).
Suppose a trader is trying to hedge equity portfolio of beta 1.8 using futures on stock market index. His portfolio is worth $10M today. Assume that the index futures price is $5,000 and each contract is written on 200 times the index. If he take 5 short positions in the stock market index futures, what would be the beta of hedge portfolio? A. 0 B. −0.3 C. 1 D. 1.2 E. 1.3
A. Briefly describe the autentication based on biometrics using four examples of biometric authentication technologies B. Briefly describe the advantages and disadvantages of biometric system (4 marks)
Briefly describe some of the advantages and disadvantages of a Zero Based budgeting process. How does this compare to the process used in your organization?
Question 3 Briefly but concisely describe two advantages and two disadvantages of a public company, in the context of comparing it to a private company.
Describe the advantages and disadvantages for an organization using a research-based approach to problem solving.
What are comparative advantages and limitations of valuing a company's common stock using the market-based (also known as multiples-based) method?