Tony Begay at Saguaro Funds. Tony Begay, a currency trader for Chicago-based Saguaro Funds, uses the following futures quotes, , on the British pound (£) to speculate on the value of the pound. a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3982/£, what is the value of her position? b. If Tony sells 12 March pound futures, and the spot rate at maturity is $1.4558/£, what is the value of her position? c. If Tony buys 3 March pound futures, and the spot rate at maturity is $1.4558/£, what is the value of her position? d. If Tony sells 12 June pound futures, and the spot rate at maturity is $1.3982/£, what is the value of her position? a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3982/£, what is the value of her position? The value of Tony's position is $ (Round to the nearest cent. Use a minus sign if value is negative.)

Tony Begay at Saguaro Funds. Tony Begay, a currency trader for Chicago-based Saguaro Funds, uses the following futures quotes, , on the British pound (£) to speculate on the value of the pound. a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3982/£, what is the value of her position? b. If Tony sells 12 March pound futures, and the spot rate at maturity is $1.4558/£, what is the value of her position? c. If Tony buys 3 March pound futures, and the spot rate at maturity is $1.4558/£, what is the value of her position? d. If Tony sells 12 June pound futures, and the spot rate at maturity is $1.3982/£, what is the value of her position? a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3982/£, what is the value of her position? The value of Tony's position is $ (Round to the nearest cent. Use a minus sign if value is negative.)

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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A farm that produces corn is looking to hedge their exposure to price fluctuations in the future. It is now May 15th and they expect their crop to be ready for harvest September 30th. You have gathered the following information: Bushels of corn they expect to produce 44,000 May 15th price per bushel $3.08 Sept 30 futures contract per bushel $3.22 Actual market price Sept 30 $3.37 Required (round to the nearest dollar): Calculate the gain or loss on the futures contract and net proceeds on the sale of the corn. Net gain or loss on future $Answer Sell the corn $Answer Net $Answer
Calculate the European call and put option on the basis of the following data: Consider the following facts regarding Bank Windhoek, which is publicly traded on the Namibian Stock Exchange (NSX): The current stock price is N $18, the exercise price is N $16, the duration of the option is 180 days, the volatility is 35%, and the risk-free rate is 8%. Show all your calculations. 1. What is the value of the European call option? 2. What is the value of the European put option? 3. Comment on the Value for both the European call & put options. 4. Why is a Black Scholes Merton model used to price options
Tony Begay at Saguaro Funds. Tony Begay, a currency trader for Chicago-based Saguaro Funds, uses the following futures quotes, , on the British pound (£) to speculate on the value of the pound. a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3982 = £1.00, what is the value of her position? b. If Tony sells 12 March pound futures, and the spot rate at maturity is $1.4558 = £1.00, what is the value of her position? c. If Tony buys 3 March pound futures, and the spot rate at maturity is $1.4558 = £1.00, what is the value of her position? d. If Tony sells 12 June pound futures, and the spot rate at maturity is $1.3982 = £1.00, what is the value of her position? a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3982/£, what is the value of her position? The value of Tony's position is $. (Round to the nearest cent. Use a minus sign if value is negative.) b. If Tony sells 12 March pound futures, and the spot rate at maturity is $1.4558/£,…
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Walmart has taken a yen futures position to hedge a 125 million yen account payable at a yen futures price of 0.009483 $/yen. As you know, yen futures are quoted to six decimal places, and each yen futures contract is for 12.5 million yen. How much does Walmart make or lose on their futures position in $ for each point the yen futures price increases?
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A trader in the United States has a portfolio of derivatives on the Australian dollar with a delta of 456. The USD and AUD risk free interest rates are 5% and 8%. What position in a one-year futures contract on the Australian dollar creates a delta-neutral position? Question 12 options: Long 469.9 Short 469.9 Short 310 None of the above
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A trader in the United States has a portfolio of derivatives on the Australian dollar with a delta of 456. The USD and AUD risk free interest rates are 5% and 8%. What position in a one-year forward contract on the Australian dollar creates a delta-neutral position? Question options: Long 494.0 Short 494.0 Short 394.0 None of the above
7- Amla, a currency trader for Muscat-based Salalah Investments, uses the following futures quotes on the British Pounds to speculate on the value of the Pounds. Pound Futures US$/Pounds Contract = 200,000 Pounds Maturity Оpen High Low Settle March 1.266 1.275 1.263 1.265 June 1.267 1.28 1.259 1.261 i. If Amla buys five June Pound futures, and the spot rate at maturity is $1.2685/Pound, what is the value of his position? ii. If Amla sells six March Pound futures, and the spot rate at maturity is $ 1.259/Pound, what is the value of his position? iii. If Amla buys eight March Pound futures, and the spot rate at maturity is $1.278/Pound, what is the value of his position? iv. If Amla sells three June Pound futures, and the spot rate at maturity is $1.268/Pound, what is the value of his position? 8- Use the following information from table for Bahrain, China & The United States containing economic, financial and business indicators from December 20, 20X0, issue of the well reputed…
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