Please help, thanks so much!
An investor has just sold seven contracts of June corn on the CBOT. The price per bushel is $1.80, and each contract is for 5000 bushels. Initial margin deposit is $2000 per contract with the maintenance margin at $1250.How much does the investor have to deposit on the investment?
An investor has just sold seven contracts of June corn on the CBOT. The price per bushel is $1.80, and each contract is for 5000 bushels. Initial margin deposit is $2000 per contract with the maintenance margin at $1250.If on the next day the price of the futures contract falls to $1.60, how much total profit or loss does the investor make?
You purchased one silver future contract at $3 per ounce. What would be your profit (loss) at maturity if the silver spot price at that time is $4.10 per ounce? Assume the contract size is 5,000 ounces and there are no transactions costs.
A portfolio manager decides to invest on the Paris Stock Exchange by buying 10 million Euro worth of a CAC 40 indexed fund. (CAC40 is the major index on Paris Stock Exchange). He exchanges his dollars to Euros at the exchange rate of $1.3/euro. He does not hedge his investment in any way. A year later he earns 5% on his equity fund in Euro terms and cashes out. While converting his principal and earnings to dollars however, he faces an exchange rate of $1.4/euro. How much money did he make as a percentage on his initial dollar investment? Show your work, don't just provide a number.
You are a buyer for Kenneth Cole. You have just placed an order for $10 million worth of merchandise from China. You dont make 90% of the payment until 6 months later when the merchandise is to be loaded on the ship. You have agreed to pay the vendor in chinese yuans. How can you protect yourself against a possible fluctuation in the exchange rate between now and then? What type of financial instrument is appropriate for your case?
Borrow from US banks for 5% annual and then buy Naira-denominated Nigerian government bonds that pay 15% a year, and pocket the difference. Is this a plausible idea? Can it work? If it cannot work, why not?
A firm with sales of $3 million a year has an average inventory of $250K. What is the number of days it takes for the firm to turn inventory into sales? Assume a year is 360 days as opposed to 365 for simplicity.
An investor has just sold seven contracts of June corn on the CBOT. The price per bushel is $1.80, and each contract is for 5000 bushels. Initial margin deposit is $2000 per contract with the maintenance margin at $1250.How much does the investor have to deposit on the investment?
An investor has just sold seven contracts of June corn on the CBOT. The price per bushel is $1.80, and each contract is for 5000 bushels. Initial margin deposit is $2000 per contract with the maintenance margin at $1250.If on the next day the price of the futures contract falls to $1.60, how much total profit or loss does the investor make?
You purchased one silver future contract at $3 per ounce. What would be your profit (loss) at maturity if the silver spot price at that time is $4.10 per ounce? Assume the contract size is 5,000 ounces and there are no transactions costs.
A portfolio manager decides to invest on the Paris Stock Exchange by buying 10 million Euro worth of a CAC 40 indexed fund. (CAC40 is the major index on Paris Stock Exchange). He exchanges his dollars to Euros at the exchange rate of $1.3/euro. He does not hedge his investment in any way. A year later he earns 5% on his equity fund in Euro terms and cashes out. While converting his principal and earnings to dollars however, he faces an exchange rate of $1.4/euro. How much money did he make as a percentage on his initial dollar investment? Show your work, don't just provide a number.
You are a buyer for Kenneth Cole. You have just placed an order for $10 million worth of merchandise from China. You dont make 90% of the payment until 6 months later when the merchandise is to be loaded on the ship. You have agreed to pay the vendor in chinese yuans. How can you protect yourself against a possible fluctuation in the exchange rate between now and then? What type of financial instrument is appropriate for your case?
Borrow from US banks for 5% annual and then buy Naira-denominated Nigerian government bonds that pay 15% a year, and pocket the difference. Is this a plausible idea? Can it work? If it cannot work, why not?
A firm with sales of $3 million a year has an average inventory of $250K. What is the number of days it takes for the firm to turn inventory into sales? Assume a year is 360 days as opposed to 365 for simplicity.