You sell one December gold futures contracts when the futures price is $1,010 per ounce. Each
contract is on 100 ounces of gold and the initial margin per contract that you provide is $2,000. The
maintenance margin per contract is $1,500. During the next day the futures price rises to $1,012 per
ounce. (a) What is the balance of your margin account at the end of the day? (b) What price change
would lead to a margin call? Detail all the cash flows.

URGENT!
From the following information, ascertain which option an investor prefer to choose for each
securities. Find out the profit and loss by opting or rejection.
Company Market price Expectation Striking price Premium
NDTV l 340 price decrease by 10% 400 50
P Ltd 260 increase by 9% 250 13
ITC Ltd 400 increase by 15% 430 60
TCS 1120 decrease by 10% 1000 100

call option and put option

Today is 1 July 2020. Joan has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Joan purchased all instruments on 1 July 2012 to create this portfolio and this portfolio is composed of 28 units of instrument A and 50 units of instrument B.

Instrument A is a zero-coupon bond with a face value of 100. This bond matures at par. The maturity date is 1 January 2030.

(a) Calculate the current price of instrument A per $100 face value. Round your answer to four decimal places. Assume the yield rate is j₂ =2.96% p.a.

(b) Calculate the current price of instrument B per $100 face value. Round your answer to four decimal places. Assume the yield rate is j₂ = 2.96% p.a. and Joan has just received the coupon payment.

Instrument B is a Treasury bond with a coupon rate of j₂ = 3.93% p.a. and face value of 100. This bond matures at par. The maturity date is 1 January 2023.

(c) What is the duration of instrument B? Express your answer in terms of years and round your answer to three decimal places. Assume the yield rate is j₂ = 2.96% p.a.

(d) Based on the price in part a and part b, and the duration value in part c, calculate the current duration of Joan’s portfolio. Express your answer in terms of years and round your answer to two decimal places.

Select one for question d)

a. 6.61

b. 4.48

c. 5.97

d. 4.41

The Mall Street Journal is considering offering a new service which will send news articles to readers by email. Their market research indicates that there are two types of potential users, impecunious students and high-level executives. Let x be the number of articles that a user requests per year. The executives have an inverse demand function P E( x ) = 100 − x and the students have an inverse demand function P U( x ) = 80 − x . (Prices are measured in cents.) The Journal has a zero marginal cost of sending articles via email.

Suppose that the journal cannot observe which type any given user is. The journal continues to o§er two packages. Suppose that it offers one package which allows up to 80 articles (intended for students) and one package that allows up to 100 articles (intended for professors). What is the highest price that students will be willing to pay for the 80-article package? What is the highest price that the journal can charge for the 100-article package if it offers the 80-article packages at the highest price the students are willing to pay? In this situation, what is the consumer surplus obtained by a professor?

Assume that the number of executives in the population equals the number of students. Let (Xe,Te) be the profit maximizing "executive package", where Xe is the number of articles the executive can access at a Total charge of Te, and (Xu,Tu) be the profit maximizing "student package", where Xu is the number of articles the student can access at a total charge of Tu. Is Xe=100? Is Xu=80? Explain. Derive the values of Xe,Te,Xu,Tu.

Today is 1 July 2020. Joan has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Joan purchased all instruments on 1 July 2013 to create this portfolio and this portfolio is composed of 35 units of instrument A and 32 units of instrument B. Instrument A is a zero-coupon bond with a face value of 100. This bond matures at par. The maturity date is 1 January 2030. Instrument B is a Treasury bond with a coupon rate of j2 = 3.06% p.a. and face value of 100. This bond matures at par. The maturity date is 1 January 2023. (d) Based on the price in part a and part b, and the duration value in part c, calculate the current duration of Joan’s portfolio. Express your answer in terms of years and round your answer to two decimal places.

Select one: a. 6.61

b. 5.41

c. 5.54

d. 7.10

(a) Calculate the current price of instrument A per $100 face value. Round your answer to four decimal places. Assume the yield rate is j₂ =3.69% p.a.

(b) Calculate the current price of instrument B per $100 face value. Round your answer to four decimal places. Assume the yield rate is j₂ = 3.69% p.a. and Joan has just received the coupon payment.

(c) What is the duration of instrument B? Express your answer in terms of years and round your answer to three decimal places. Assume the yield rate is j₂ = 3.69% p.a.

Today is 1 July 2020. Joan has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Joan purchased all instruments on 1 July 2013 to create this portfolio and this portfolio is composed of 36 units of instrument A and 34 units of instrument B.

Instrument A is a zero-coupon bond with a face value of 100. This bond matures at par. The maturity date is 1 January 2030. Instrument B is a Treasury bond with a coupon rate of j2 = 4.53% p.a. and face value of 100. This bond matures at par. The maturity date is 1 January 2023.

(a) Calculate the current price of instrument A per $100 face value. Round your answer to four decimal places. Assume the yield rate is j2 =2.57% p.a.

(b) Calculate the current price of instrument B per $100 face value. Round your answer to four decimal places. Assume the yield rate is j2 = 2.57% p.a. and Joan has just received the coupon payment.

(c) What is the duration of instrument B? Express your answer in terms of years and round your answer to three decimal places. Assume the yield rate is j2 = 2.57% p.a.

(d) Based on the price in part a and part b, and the duration value in part c, calculate the current duration of Joan’s portfolio. Express your answer in terms of years and round your answer to two decimal places.

Today is 1 July 2020. Joan has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Joan purchased all instruments on 1 July 2011 to create this portfolio and this portfolio is composed of 27 units of instrument A and 22 units of instrument B.

• Instrument A is a zero-coupon bond with a face value of 100. This bond matures at par. The maturity date is 1 January 2030.
• Instrument B is a Treasury bond with a coupon rate of j₂ = 2.40% p.a. and face value of 100. This bond matures at par. The maturity date is 1 January 2023.

(a) Calculate the current price of instrument A per $100 face value. Round your answer to four decimal places. Assume the yield rate is j₂ =4.23% p.a.

(b) Calculate the current price of instrument B per $100 face value. Round your answer to four decimal places. Assume the yield rate is j₂ = 4.23% p.a. and Joan has just received the coupon payment.

(c) What is the duration of instrument B? Express your answer in terms of years and round your answer to three decimal places. Assume the yield rate is j₂ = 4.23% p.a.

(d) Based on the price in part a and part b, and the duration value in part c, calculate the current duration of Joan’s portfolio. Express your answer in terms of years and round your answer to two decimal places.

2. Consider two Bertrand competitors in the market for brie, Jason and Kayal. The cheeses of Jason and Kayal are differentiated, with the demand for Jason's cheese given by qt = 30 - py + px, where qt is the quantity Jason Sells, py is the price Jason charges, and px is the price charged by Kayal. The demand for Kayal’s cheese is similarly given by qt = 30 - px + py. Assume the marginal cost of producing cheeses is zero for both producers.

a) Find the Bertrand equilibrium prices and quantities as well as the profits for these two competitors.

b) Now consider a situation in which Jason sets his price first, and Kayal responds, Solve for profit-maximizing price and quantity and the level of profit for each competitor.

c) Based on (i) and (ii), was Jason's attempt to seize the first-mover advantage worthwhile?