Levels Tought:
Elementary,Middle School,High School,College,University,PHD
Teaching Since: | Jul 2017 |
Last Sign in: | 307 Weeks Ago, 6 Days Ago |
Questions Answered: | 5023 |
Tutorials Posted: | 5024 |
Hi this assignment for option future course need to answer it with fully calculation, please write solve it in paper
UNBSJ
BA 4455 Derivatives: Options and Futures
Group Assignments
2017
Submission Deadline: 430 PM, Wednesday, April 5, 2017
1. Answer ALL:
a. “When a futures contract is traded on the floor of the exchange, it may be the case that the open
interest increases by one, stays the same, or decreases by one.” Explain this statement very carefully.
b. “The risk of a futures contract is its basis risk. The risk of the basis is less than the risk of the
underlying asset.” Discuss.
c. Typically, why is F > S for a gold futures, whereas F < S for a bond futures?
d. Suppose that on October 24, 2013, a company sells one April 2014 live-cattle futures contract. It
closes out its position on January 21, 2014. The futures price (per pound) is 91.20 cents when it enters
into the contract, 88.30 cents when it closes out the position, and 88.80 cents at the end
Hel-----------lo -----------Sir-----------/Ma-----------dam----------- ----------- -----------Tha-----------nk -----------you----------- fo-----------r y-----------our----------- in-----------ter-----------est----------- an-----------d b-----------uyi-----------ng -----------my -----------pos-----------ted----------- so-----------lut-----------ion-----------. P-----------lea-----------se -----------pin-----------g m-----------e o-----------n c-----------hat----------- I -----------am -----------onl-----------ine----------- or----------- in-----------box----------- me----------- a -----------mes-----------sag-----------e I----------- wi-----------ll -----------be -----------qui-----------ckl-----------y