23. On 34 June, 2011 future with series "RIL (250), July" is purchased by Mr. Avinash and sold by Mr. Mohit with an exercise price 21,000. If initial margin deposit is at 20% of the transaction, a Then show what will be the initial margin deposit. b. If settlement price happens to be as follows, then calculate mark-to-market margin for buyer and seller of futures Date Settlement Price Date Settlement Price 6 June 1,010 7 June 1,050 8 June 1,020 9h June 980 10 June 1,000 13 June 970

23. On 34 June, 2011 future with series "RIL (250), July" is purchased by Mr. Avinash and sold by Mr. Mohit with an exercise price 21,000. If initial margin deposit is at 20% of the transaction, a Then show what will be the initial margin deposit. b. If settlement price happens to be as follows, then calculate mark-to-market margin for buyer and seller of futures Date Settlement Price Date Settlement Price 6 June 1,010 7 June 1,050 8 June 1,020 9h June 980 10 June 1,000 13 June 970

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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3. Compute invoice price of the following positions for settlement date Sept 10, 2016: (Do not use the excel formula ‘ACCRINT' for accrued interest). Position Sell Sell Buy Sell Maturity 2/1/2017 5/15/2020 11/15/2040 8/15/2046 Bid Discount 1.065% Annual Coupon Rate 7.125% 3.375% 4.875% Bid Price 133.9891 127.0313 96.2969 Asked Price 133.8047 127.0938 96.3281
Assume a futures price of Php5000 at the start of the transaction, with Php250 initial margin requirement and a Ph150 maintenance margin requirement. The trader takes in a short position of 10 contracts. Marking-to-market process occurs over the period of seven trading days. A. Complete the table above for the holder of the long position. B. When could there be a margin call? C. How much are the total gains or losses by the end of day 7?
An investor enters a three-year swap contracts bypaying fixed price and receive spot price of Applesstock at the end of each year. The spot price ofApple's stock is Ș515 now, and the risk-free rate is3%.a. Draw the synthetic forwards contracts tomimicking this swap contract.o. Compute the rational fixed price based onarbitrage-free principal
1. Assume a futures price of Php5000 at the start of the transaction, with Php250 initial margin requirement and a Ph150 maintenance margin requirement. The trader takes in a long position of 10 contracts. Marking- to-market process occurs over the period of seven trading days. A. Complete the table above for the holder of the long position. B. When could there be a margin call? C. How much are the total gains or losses by the end of day 7? Futures Beginning Funds Settlement Ending Day Price Gain/Loss Balance Deposited Price Balance Change 5000 1 4960 2 4800 3 5050 4 5175 5 5200 6 5250.50 7 5310.75 D. Complete the table above for the holder of the short position. Futures Beginning Funds Settlement Ending Day Price Gain/Loss Balance Deposited Price Balance Change 5000 1 4960 2 4800 3 5050 4 5175 5 5200 6 5250.50 7 5310.75 Е. How much are the total gains or losses by the end of day 7?
1. (7 marks) A stock XYZ is quoted 1015. Two counterparties agree to enter into a forward contract maturing at T = 6 months. Here are the possible values of XYZ, at maturity. XYZ at T=6 months XYZ Forward Long Short 1000 1015 1020 1030 1080 (A) Find the possible values of the payoff for the buyer and for the seller of the forward and sketch a graph of the payoffs. (3.5 marks) (B) We know that spot price at expiration can be duplicated according to Forward + Zero Coupon bond = Spot Price at Maturity. Find the possible values of the zero coupon bond. What can you say about the risk associated with this bond? (3.5 marks)
Suppose you work as a broker in an investment company, and there is an expectation that the market interest rate will be 0.029. based on this expectation you are required to calculate the market price for the following CD;Issue date: 1 January 2021 Maturity date:10 May 2021. The face value OMR 10000. Interest on CD: 5 percent. Select one: a. 15942.02 b. 15574.10 c. 15677.97 d. All the given choices are not correct e. 15572.50
Based on the information provided below, estimate the total profit or loss on a position: 1. Instrument traded: Futures Contract (London Metal Exchange) 2. Underlying metal: Nickel of 99.80% purity 3. Number of instruments traded: 130 4. Position taken: short 5. Quotation: USD per tonne 6. Lot size = 6 tonnes. %3D 7. Settlement type: physical 8. Futures price: 18782 9. Settlement price at the time of expiration: 18430
Suppose that you enter into a 6-month forward contract at a price of $100 on a non-dividend paying stock currently trading at $99. Assuming that the above forward price is the no-arbitrage price of the contract, which of the below is closest to the level of the annual interest rate (using discrete compounding)? Question 3Answer a. 4.1 % b. 1.0 % c. 3.1 % d. 2.0 %
8. Buy one July 170 put contract. Hold it until the option expires. Determine the profits and display the results in a chart (include profits for the following underlying stock prices: 130,140,150,160,170,180,190). Identify the breakeven stock price at expiration. What is the maximum possible gain and loss on the transaction?
suppose you buy an non-dividend paying asset at $50 and sell a 6 month futures contract at $53. What is your profit or lost at expiration if the asset price down to $47? current 6 month interest is 0.25% p.a. (Ignore carrying costs and transaction cost)? What happens to the basis through the contract's life? a.none of the above b.it initially decreases, then increases c.it initially increases, then decreases d.it moves toward zero at expiry e.it remains relatively steady
You entered into a futures contract to buy €62,500 at $1.20/€ yesterday. Your initial margin was $4,200. Your maintenance margin is $2,500 (meaning that your broker leaves you alone until your account balance falls to $2,500). At what settle price will you get a margin call? $1.2750/€ $1.0272/€ $1.1728/€ O $1.5800/€
Suppose you work as a broker in an investment company, and there is an expectation that the market interest rate will be 0.031. based on this expectation you are required to calculate the market price for the following CD; Issue date: 1 January 2021 Maturity date:10 May 2021. The face value OMR 10000. Interest on CD: 5 percent.

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