Business, 06.12.2019 01:31 karenaustin5
The spot price of an investment asset is $25 and the risk-free rate is 8%, 8.5% and 9.5% for one-year-, two-year- and three-year-maturity, respectively. the asset provides an income of $4 at the end of the first year and at the end of the second year. note: all interest rates are quoted with continuous compounding in this problem1) what is the three-year forward price for no arbitrage opportunity? 2) if the 3-year forward price in the market is quoted as $21, what arbitrage opportunities does this create? 1) theoretical forward price = $35.841) theoretical forward price = $20.841) theoretical forward price = $23.851) theoretical forward price = $29.852) long forward contract, and short the underlying asset in the spot market2) short forward contract, and short the underlying asset in the spot market2) long forward contract, and buy the underlying asset in the spot market2) short forward contract, and buy the underlying asset in the spot marke
Answers: 3
Business, 21.06.2019 23:30
Consider the following scenarios. use what you have learned to decide if the goods and services being provided are individual, public, or merit goods. for each case, state what kind of good has been described and explain your answer using the definitions of individual, public, and merit goods. (6 points each) 1. from your window, you can see a city block that's on fire. you watch city firefighters rescue people and battle the flames to save the buildings. 2. while visiting relatives, you learn that your cousins attend a nearby elementary school that is supported financially by local property tax revenue. 3. you see a squadron of military jets flying overhead. 4. you find out that your aunt works for a defense manufacturing company that has several defense contracts with the government. she tells you that she works for a team that is producing a communications satellite. 5. your class visits a local jail run by a private, profit-making company that detains county criminals and is paid with tax revenue.
Answers: 1
Business, 23.06.2019 13:50
Anthony wants to start making periodic investments in aretirement account. he will make a yearly contribution of$3,000 at the beginning of each year. the account will pay7.2% interest, compounded monthly. how much will hisaccount be worth after 35 years? $369,600$10,560$112,560$490,928.71
Answers: 2
Business, 23.06.2019 14:20
Jessica wants to plan where she will place furniture in her room, so she has drawn a scale model of her room in order to begin planning. the scale model is 11 inches long and 8.5 inches wide. jessica notices that the door to her room takes up 1.75 inches on the right-side wall of her room, and she realizes that she cannot place any furniture in the area that the door turns through when it is opened.
Answers: 3
Business, 24.06.2019 00:30
Alex has not been keeping his banking records up-to-date on his last bank statement he found that had been charged an overdraft fee for writing a bad check in addition to his being charged a fee which of these is another possible consequence of an overdraft
Answers: 2
The spot price of an investment asset is $25 and the risk-free rate is 8%, 8.5% and 9.5% for one-yea...
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