Consider the commodities and financial assets listed in the following table: Spot Price $2,960 per ton $0.60 per bushel $141.8 Magnoosium Oat bran Asset Biotech stock index Allen Wrench Co. common stock 5-year Treasury note Westonian ruple Magnoosium Oat bran Asset $59.60 $110.53 3.26 ruples = $1 The risk-free interest rate is 7% a year, and the term structure is flat. a. Calculate the six-month futures price for each case. (Do not round intermediate calculations. Round the Westonian ruple valu 3 decimal places and the other answers to 2 decimal places.) Biotech stock index Allen Wrench Co. common stock 5-year Treasury note Westonian ruple Future Price per ton per bushel Comments Net convenience yield 4% per year Net convenience yield = 0.6% per month Dividend = 0 Cash dividend = $4.00 per year ruples/$ 8% coupon 13% interest rate in ruples e. Suppose Allen Wrench stock falls suddenly by $14.00 per share. Investors are confident that the cash dividend will not be redu What happens to the futures price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Consider the commodities and financial assets listed in the following table: Spot Price $2,960 per ton $0.60 per bushel $141.8 Magnoosium Oat bran Asset Biotech stock index Allen Wrench Co. common stock 5-year Treasury note Westonian ruple Magnoosium Oat bran Asset $59.60 $110.53 3.26 ruples = $1 The risk-free interest rate is 7% a year, and the term structure is flat. a. Calculate the six-month futures price for each case. (Do not round intermediate calculations. Round the Westonian ruple valu 3 decimal places and the other answers to 2 decimal places.) Biotech stock index Allen Wrench Co. common stock 5-year Treasury note Westonian ruple Future Price per ton per bushel Comments Net convenience yield 4% per year Net convenience yield = 0.6% per month Dividend = 0 Cash dividend = $4.00 per year ruples/$ 8% coupon 13% interest rate in ruples e. Suppose Allen Wrench stock falls suddenly by $14.00 per share. Investors are confident that the cash dividend will not be redu What happens to the futures price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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
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The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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