1. A trader owns 50,000 units of a particular asset and wants to hedge the value of his position with futures contracts on another related asset. Each futures contract is on 5,000 units. The spot price of the owned asset is $28 and the standard deviation of its price change is $0.45. The futures price of the related asset is $27 and the standard deviation of price change is estimated to be $0.40. The correlation between the spot price of the owned asset and the futures price of the related asset is 0.92. a) (1 point) Should the trader long or short the futures
Answers: 2
Business, 22.06.2019 19:00
In 1975, mcdonald’s introduced its egg mcmuffin breakfast sandwich, which remains popular and profitable today. this longevity illustrates the idea of:
Answers: 1
Business, 22.06.2019 20:00
Suppose a country's productivity last year was 84. if this country's productivity growth rate of 5 percent is to be maintained, this means that this year's productivity will have to be:
Answers: 2
Business, 22.06.2019 21:20
Which of the following best explains why large companies pay less for goods from wholesalers? a. large companies are able to pay for the goods they purchase in cash. b. large companies are able to increase the efficiency of wholesale production. c. large companies can buy all or most of a wholesaler's stock. d. large companies have better-paid employees who are better negotiators.
Answers: 2
Business, 22.06.2019 22:30
Schuepfer inc. bases its selling and administrative expense budget on budgeted unit sales. the sales budget shows 1,800 units are planned to be sold in march. the variable selling and administrative expense is $4.30 per unit. the budgeted fixed selling and administrative expense is $35,620 per month, which includes depreciation of $2,700 per month. the remainder of the fixed selling and administrative expense represents current cash flows. the cash disbursements for selling and administrative expenses on the march selling and administrative expense budget should be:
Answers: 1
1. A trader owns 50,000 units of a particular asset and wants to hedge the value of his position wit...
Mathematics, 12.04.2021 22:10
English, 12.04.2021 22:10
Mathematics, 12.04.2021 22:10
Business, 12.04.2021 22:10
Mathematics, 12.04.2021 22:10
Mathematics, 12.04.2021 22:10
Mathematics, 12.04.2021 22:10
Mathematics, 12.04.2021 22:10
Mathematics, 12.04.2021 22:10
Mathematics, 12.04.2021 22:10