Access Futures Questions and Answers | CFS

Recent Futures Questions & Answers

Suppose that the 91-day T-bill futures are selling at INR 94. The current 91-day T-bill rate is 5.8%. A speculator expects the interest rate...

Suppose that the 91-day T-bill futures are selling at INR 94. The current 91-day T-bill rate is 5.8%. A speculator expects the interest rate to increase in the next 10 days from the current rate of 5.8% to 6.5%. What action should the speculator take in order to make money out of this info...

View Answer

Assume that the futures price of the cashew contract is INR 5,500 and the spot price of cashews is INR 5,400 during the tender period. The p...

Assume that the futures price of the cashew contract is INR 5,500 and the spot price of cashews is INR 5,400 during the tender period. The prices are per carton and each futures contract is for 50 cartons. What transactions would an arbitrager undertake? What would be the arbitrage profit...

View Answer

Understanding Futures Quotations Using Figure 16.1, answer the following questions: a. What was the settle price for September 1999 corn fut...

Understanding Futures Quotations Using Figure 16.1, answer the following questions: a. What was the settle price for September 1999 corn futures on this date? What is the total dollar value of this contract at the close of trading for the day? b. What was the settle price for March 1999 Tr...

View Answer

What type of option(s) would speculators buy if they thought the euro would increase more than the market believed? ...

What type of option(s) would speculators buy if they thought the euro would increase more than the market believed? ...

View Answer

A stock index currently stands at 350. The risk-free interest rate is 8% per annum (with continuous compounding) and the dividend yield on ...

A stock index currently stands at 350. The risk-free interest rate is 8% per annum (with continuous compounding) and the dividend yield on the index is 4% per annum. What should the futures price for a 4-month contract be? ...

View Answer

What must be true of the risk of the spot price of an asset if the futures price is an unbiased estimate of the ultimate spot price? ...

What must be true of the risk of the spot price of an asset if the futures price is an unbiased estimate of the ultimate spot price? ...

View Answer

1. What must be the net inflow or outlay from marking to market for the clearinghouse? 2. Suppose, as in our example, that T-bonds will be ...

1. What must be the net inflow or outlay from marking to market for the clearinghouse? 2. Suppose, as in our example, that T-bonds will be priced at $110, $111, or $112 in 2 months. Show that the cost in June of purchasing $200,000 par value of T-bonds net of the profit/loss on two long T...

View Answer

What must be the net inflow or outlay from marking to market for the clearinghouse? ...

What must be the net inflow or outlay from marking to market for the clearinghouse? ...

View Answer

What kinds of information and services does the Web site provide for individuals, small businesses, and large businesses? List these service...

What kinds of information and services does the Web site provide for individuals, small businesses, and large businesses? List these services and write several paragraphs describing one of them, such as UPS Trade Direct or Automated Shipment Processing. Explain how you or a business would ...

View Answer

Assume that you enter into a long position in a January gold futures (100 grams) contract at INR 10,079 on October 15, 2007. On January 16, ...

Assume that you enter into a long position in a January gold futures (100 grams) contract at INR 10,079 on October 15, 2007. On January 16, 2008, you decide to close your position when the futures price is INR 11,269. One contract is for 10 g of gold. What is your profit? ...

View Answer

textbook solutions

Just $7.00/month

Subscription

Get immediate access to 24/7 Homework Help, step-by-step solutions, instant homework answer to over 40 million Textbook solution and Q/A

Pay $7.00/month for Better Grades

support@crazyforstudy.com

+1 (775) 500-0051