Question

7) Three months ago, Newmont Mining en Ounces of gold. At the time, the 1-year forward price was US forward price of gold is now USD 1,250 per ounce. In is 2.75% per year for all maturities, and gold storage c current mark-to-market value of the forward contract? B entered in a one-year forward contract to sell 1,000 vard price was USD 1,275 per ounce. The 9-month Ju per ounce. The continuously compounded risk-free rate tu gold storage costs are assumed to be zero. What is the 8) A defined-benefit pension fund reported assets and ension fund reported assets and liabilities of $800 million and $750 million respectively as of vear-end 2017. At the beginning of 2018, fund assets were between S&P 500 equities and the Barclays Aggrega w equities and the Barclays Aggregate fixed income index, which has a modified duration of 4.6. Actuarial estimates showed the fund liabilities had a modified The December 2018 market downturn reduced equities by sumates showed the fund liabilities had a modified duration of 12. 10 market downturn reduced equities by 10% for the full year and yields fell oy Ju ops across the curve through year end. Calculate the change in fund surplus in 2018.

Answer 1

ANS - 7 Mark - to - Market Value 9- month Contractid x contract rate rate size It rate x 9 month 12 month 1275) X 1o00 0.0275 12 -25000 1.020625 USD 24 494.80 |→outfiow