Question

Please show your work and explain how you got your answer along the way. Do not...

Please show your work and explain how you got your answer along the way. Do not simply show an answer or show a picture of an excel spreadsheet please.

The following table gives data on daily dollar changes in the spot price and the futures price for a certain commodity. Use the data to calculate a minimum variance hedge ratio.

day

1

2

3

4

5

Spot Price Change

+0.51

+0.50

−0.40

−0.46

+0.5

Futures Price Change

+0.47

+0.52

−0.27

−0.4

+0.60

day

6

7

8

9

10

Spot Price Change

+0.1

+0.1

+0.65

−0.51

−0.53

Futures Price Change

−0.06

+0.15

+0.80

−0.75

−0.64

0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
Please show your work and explain how you got your answer along the way. Do not...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Please use EXCEL to do it Show your answers along with the formula and steps you...

    Please use EXCEL to do it Show your answers along with the formula and steps you used for each question Table 1.en January 1,2019 LIBOR so Im days) Problem 3: On January 1, 2019,a US-based lender wishes to hedge against decrease n future interest rates. The lender proposes to hedge against this risk by entering into an FRA with the notional amount of S10 million Use 30/360 day ceent coav ention ลnd simple interest rate 540% 530% s 20% 510%...

  • Use Table 8.1, a computer, or a calculator to answer the following. Suppose a candidate for...

    Use Table 8.1, a computer, or a calculator to answer the following. Suppose a candidate for public office is favored by only 47% of the voters. If a sample survey randomly selects 2,500 voters, the percentage in the sample who favor the candidate can be thought of as a measurement from a normal curve with a mean of 47% and a standard deviation of 1%. Based on this information, how often (as a %) would such a survey show that...

  • Please use EXCEL to do it, Thanks! Show your answers along with the formula and steps...

    Please use EXCEL to do it, Thanks! Show your answers along with the formula and steps you used for each question Problem 2: A US-based firm expects to pay 1,000,000 for importing goods 90 days later. Thc firm's manager want to hedgc against possible currency risk in the future. The risk-free rate in US is 2% pa and the Euro risk-free rate is 3% pa Both interest rates will remain the same in 90 days. The current spot exchange rate...

  • if possible please write neat explaining how you got your answer so I could better understand...

    if possible please write neat explaining how you got your answer so I could better understand problems like these in the future A student hangs a 0.125 kg object on a spring, sets it into oscillation, and obtains the data for the position and velocity of the object as a function of time shown in the graphs below. 1001 0.80 +--A 0.60 Position (m) 0.40 + 0.20 +--- 0.004 0.0 0.5 1.0 1.5 Time (s) 2.0 2.5 1.01 0.5 Velocity...

  • please show work step by step and explain how you got the answer 5. If total...

    please show work step by step and explain how you got the answer 5. If total liabilities increased by $25,000 and stockholders' equity decreased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period? a. $5,000 decrease b. $5,000 increase c. $20,000 decrease d. $20,000 increase o BI HII

  • Please show all work. Provide steps and formulas to how you got your answer. This is...

    Please show all work. Provide steps and formulas to how you got your answer. This is so I can learn how to do these problems. Question 3 TTK Corp. preferred stock pays a $10 annual dividend per share. big, boob uliofasi (3.1) What is the price of a share of TTK preferred if similar-risk preferred yields 8%? O ver the (3.2) What is the price of comparable preferred yields 11%? vields 112

  • Please show all steps and work. Any help will be appreciated and thank you for your...

    Please show all steps and work. Any help will be appreciated and thank you for your time! Consider the financial statements for Nano Networks, Inc. The closing stock price for Nano Network was $56.67 (split adjusted) on December 31, 2005. On the basis of the financial data presented, compute the various financial ratios and make an informed analysis of Nano's financial health. . Debt ratio 2. Times-interest-earned ratio 3. Current ratio 4. Quick (acid-test) ratio 5. Inventory turnover ratio 6....

  • Please answer the 3 empty boxes. Thank you! Also, show your work on how you got...

    Please answer the 3 empty boxes. Thank you! Also, show your work on how you got the calculations. Quantitative Problem 11 Hubbard Industries just paid a common dividend, Do, of $1.50. It expects to grow at a constant rate of 3% per year. If investors require a 11% return on equity, what is the current price of Hubbard's common stock? Do not round Intermediate calculations. Round your answer to the nearest cent. per share Zero Growth Stocks: The constant growth...

  • Please explain or show work on how you got your answer. Nike Sales revenue Allowance for...

    Please explain or show work on how you got your answer. Nike Sales revenue Allowance for doubtful accounts, beginning Allowance for doubtful accounts, ending Accounts receivable balance (gross), beginning Accounts receivable balance (gross), ending $20,833 82.6 107 2,865 2,986.0 adidas $9,437 131 113 1,676 1,477 x Your answer is incorrect. Try again. Calculate the accounts receivable turnover for both companies. (Round answers to 1 decimal place, e.g. 12.5.) Nike adidas 5.0 Accounts receivable turnover T 7.1 times | times LINK...

  • I am lost. How would i do these? please show how you got the answer. Perfect...

    I am lost. How would i do these? please show how you got the answer. Perfect Competition Waldhet This is a combination of chapter 7 and 8 which includes the free possible market outcomes that were presented in the textbook. Complete the following worksheets and answer the questions Fach sheet Pives you the Price above the table and a complete Total Cost com Given that information you should be able to fill in the rest of the worksheet. You may...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT