Question
In: Finance
After 3 months the new spot price is R140. What will be the profit /loss to the long position in 3 months?
Given the information below.
Spot = R100
Risk-free rate = 10%
Maturity = 1 year
After 3 months the new spot price is R140. What will be the profit /loss to the long position in 3 months?
Solutions
Expert Solution
Given spot price = 100
Interest rate = 10%
For 3 months interest rate = 2.5%
Interest = 100 *2.5% = 2.5
Profit = 40 - 2.5 = 37.5
(140-100=40).
jeff jeffy answered 2 years agoRelated Solutions
After 4 months the new spot price is R140. What will be the profit or loss to the short position in month 4?
Given the following information below.Spot = R100Risk-free = 10%Maturity = 1 yearAfter 4 months the new spot price is R140. What will be the profit
or loss to the short position in month 4?
5. Suppose a spot price of a market index is $1000. After 6 months the market...
5. Suppose a spot price of a market index is
$1000. After 6 months the market index is priced at 1020. The
annual risk-free rate is 5%. The premium on the short put, with
exercise price of 1050 is $10.
a. What is the profit at expiration for a short
put? [4]
b. What is the intrinsic value of the short put
in (i) above? [2]
Options 1. You are to receive €125,000 in 3 months and today’s spot price is $1.17,...
Options
1. You are to receive €125,000 in 3 months and today’s spot
price is $1.17, but the 3 month forward rate is $1.19. If a (put or
call?) option (€125,000) cost $1,500 what is the least you will
receive for selling your euros (net of the option cost) for
dollars? (You buy the put for $1,500 and exercise it by selling the
euros at $1.19 if the market price of the euro is less than $1.19.)
Give answer is...
Given below are the Statements of Financial Position and the Statement of Profit or Loss for...
Given below are the Statements of Financial Position and the
Statement of Profit or Loss for BA107 Trading Bhd:
2020
(RM)
Sales 505,000
Cost of sales (105,000)
Gross profit 400,000
Expenses (252,000)
Profit before tax 148,000
Taxation (40,000)
Profit after tax 108,000
2020 2019
(RM) (RM)
Property, plant and equipment 355,000 300,000
Trade receivables 80,000 75,000
Inventory 145,000 120,000
Bank balance 24,500
15,000
604,500 510,000
Ordinary share capital 250,000 250,000
Retained profits 222,500 140,000
472,500 390,000
Other payables 87,000...
Question 5 A pure monopolist's short-run profit-maximizing or loss-minimizing position is such that price always exceeds...
Question 5
A pure monopolist's short-run profit-maximizing or
loss-minimizing position is such that price
always exceeds ATC.
equals marginal revenue.
will always equal ATC.
will vertically intersect demand where MR = MC.
Question 8
In a natural monopoly case, the socially optimal pricing policy
rule will often yield a higher price than the fair-return pricing
rule.
True
False
Question 10
If a monopolist's marginal revenue is $3.00 and its marginal
cost is $4.50, it will increase its profits by
raising...
Calculate the profit/loss for the seller of the put option when the strike is .36; spot...
Calculate the profit/loss for the seller of the put option when
the strike is .36; spot is .34 and premium is .01.
2. define price elasticity and how it is measured? 3. discuss the profit maximising position of...
2. define price elasticity and how it is measured?
3. discuss the profit maximising position of a monopolist in
both long and short run?
4.1. define
4.1.1 Constant returns to scale
4.1.2 increasing returns to scale
4.1.3 Decreasing returns to scale
Suppose that we entered a long position of 3-year forward on crude oil six months ago,...
Suppose that we entered a long position of 3-year forward on
crude oil six months ago, when the forward price was $30 per
barrel. Now, the spot price of the crude oil is $25 per barrel and
the risk-free rate is 2% per annum. What is the value of the long
position?
Describe the changes in: a. Statement of financial position b. Statement of profit and loss c....
Describe the changes in:
a. Statement of financial position
b. Statement of profit and loss
c. Other comprehensive income
d. Statement of cash flows
in the following:
(1) Cost of services (COGS) has been $1000 less (paid) owing to
increased effeciencies
(2) $500 has been paid off on a mortgage (Current)
(3) Equipment for $6000 has been bought on account
(4) Income had been $2000 higher owing to increased prices
(Credit sales affected)
(5) A bill for $600 delivery services...
Please construct a Profit & Loss Statement for the first six months of the year 2015,...
Please construct a Profit & Loss Statement for the first six
months of the year 2015, on Jeff's Auto Repair with the following
information:
Purchase of spare
parts
$65,000
Salary paid to
mechanics
$127,000
Commission paid to marketing
agents
$18,000
Money received for cars
repaired
$245,000
Money received for storage of
cars
$45,000
Sales of
tires
$84,000
Rent of shop paid to
landlord
$28,000
Other expenses paid
out
$23,000
Tax
bracket ...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Merger Analysis TransWorld Communications Inc., a large telecommunications company, is evaluating the possible acquisition of Georgia...
- Journal Entries and Trial Balance Elite Realty acts as an agent in buying, selling, renting, and...
- In racket Assume that the elements of a list are indexed starting with 1. Write a...
- Describe System Development Life Cycle (SDLC) and how it is used.
- What symbolism do you find in the play,Oedipus?
- • Using the Scanner class to obtain input from the user. • Using printf to output...
- In each of the following situations, develop a tentative plan for the client. List the various...
ADVERTISEMENT