uppose you take a short position in 15-Russian ruble contracts at a price of $0.010125/RUB on the CME (Ruble contract consists of 2,500,000 rubles). Prices over the next two days are $0.010055/RUB and $0.009920/RUB. If your initial performance margin was $110,000, what is its value after two days of marking-to-market?

Q: Asset XYZ is selling for $200 in the cash market. Asset XYZ pays the holder $16 per year in…

A: Selling price or Spot price(S) is $200 Dividend Per year is $16, 3 month interest rate(r) is 6% per…

Q: A firm sets aside $26000 today in an account earning 8% APR compounded annually.  The purpose of the…

A: Amount set aside today(Present Value) is $26000 Interest rate(rate) is 8% compounded annually…

Q: Do not give excel answer , i need explained answer. A payment of $5000 that was due 20 days ago and…

A: in this we have to calculate present value of all payment and equate to get value of X.

Q: S. A forward contract on 100 oz of gold starts on 5th April. The deliv rice on 5th April is $600 /…

A: Price of forward contracts would be spot price plus 6 month interest on spot that would be beginning…

Q: Katanga wants to borrow $100mm in 4 months' time for 6 months. So they entered into a FRA at 4.5%…

A: Principal amount = $100mmFRA expiry = 4 monthsLoan period = 6 monthsContract rate = 4.5%4-month spot…

Q: i would like the steps on how this is solved i want to know how to solve step by step

A: Step 1: Understand the VariablesFV (Future Value): The amount of money we want in the future.PV…

Q: ou buy one Hewlett Packard August 50 call contract and one Hewlett Packard August 50 put contract.…

A: The highest potential loss refers to the loss that is expected from the insurance policy for an…

Q: Imagine you borrow $600 from your roommate, agreeing to pay her back $600 plus 7 percent nominal…

A: Fisher Equation defines the relationship between the real rate of interest and the nominal rate of…

Q: We just signed a lease contract in a 200,000 SF office building complex for $25/SF/year with rents…

A: a. Current Value of Building as on lease= 200,000 SF Discounting Rate= 10% No. of years= 10 Years…

Q: The following parameters are provided:S = $40, K= $45, r = 5% (continuously compounded), Time to…

A: Put Call parity is a concept that shows the relation between the Call price, Put price and the…

Q: As an independent consultant, you just booked a client for $1,000 per month, with the first payment…

A: Given information:Monthly payment = $1000 Number of months = 60 Annual interest rate = 6.6%

Q: Assume a $100,000 3/1 hybrid with a 30-year maturity and an initial rate of 6 percent. 1. Calculate…

A: Mortgage loans are secured loans and paid by the equal monthly payments that carry payment for…

Q: Using the ratio 1 GBP = $1.33 ( US dollars )

A: Project A: Initial investment = $1000 Cash flow after 1 year = £900 = 900*1.33 = $1197 Using the…

Q: Michael had to make a payment of $2,750 in 10 months and $2,300 in 20 months, to a raw material…

A: Payment in 10 months (P1) = $2750 Payment in 20 months (P2) = $2300 Let the settlement payment in 4…

Q: year forward contract was established with a price of $70.25. Now, a year and a half later (t= 1.5…

A: The forward are contract that are to be settled in the future based on the spot prices and it may be…

Q: Determine the present worth of a geometric gradient series of Contract B at an interest rate of 8%…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: a) How much should you invest at 12% interest today if you want to receive TK. 10,000 at the cnd of…

A: Hi, there, Thanks for posting the question. As per our Q&A honor code, we must answer the first…

Q: Consider a contract that pays out $1,103 in 6 months, $139 in 12 months, $72 in 18 months, $5 in 2…

A: Contract price refers to the price at which the goods are purchased by the buyer from the seller as…

Q: . Using the following information, calculate the price of a 12-month short call option using a…

A: The call option refers to the derivative instrument that provides its holder with the choice of…

Q: A. You are the treasurer of Arizona Corp. and must decide how to hedge (if at all) future…

A: Strike price = $0.50premium = $0.02Future spot rateProbability$0.4620%$0.4830%$0.5250%

Q: A company caps three-month LIBOR at 10% per annum. The principal amount is S20 million. On a reset…

A: It has been provided that, Principal amount =$20,000,000 Reset rate = 12% Initial rate = 10%

Q: Yield Calculation i. Assume that newly issued three- month (90 days) T - bills with a par value of…

A: As per company guideline, first three parts will be solved.

Q: What is the discount margin? +30.94 bps -309.4 bps -30.94 bps +309.4 bps

A: The discount margin is used to evaluate a floating-rate security's attractiveness by calculating the…

Q: The spot price of an investment asset is $35 and the risk-free rate for all maturities is 5% with…

A: Given: Particulars Amount Spot price $35 Risk free rate 5% First year income $2.00 Second…

Exchange Rate Risk

It is the possibility that the value of a currency will fluctuate in the future. In the wake of globalization, business establishments have increasingly ventured into international markets. The volume of international trade has prospered excellently in the near past and is expected to be more affluent in the future. The use of exchange-traded derivative financial instruments has been multi-folded to provide for the requirements of various MNCs and offshore potential investors. Most banks and financial institutions have helped integrate the global economies. Our Government has introduced some bold and extreme measures to fulfil the purpose behind the fiscal, industrial, and monetary policies. The enactment of GST is a huge step towards streamlining the taxation system of the country. Owing to Covid-19, this aspect of corporate risk management has become critical.