Alpha Geek

(8)

$10/per page/Negotiable

About Alpha Geek

Levels Tought:
University

Expertise:
Accounting,Algebra See all
Accounting,Algebra,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Communications,Computer Science,Environmental science,Essay writing,Programming,Social Science,Statistics Hide all
Teaching Since: Apr 2017
Last Sign in: 439 Weeks Ago, 1 Day Ago
Questions Answered: 9562
Tutorials Posted: 9559

Education

  • bachelor in business administration
    Polytechnic State University Sanluis
    Jan-2006 - Nov-2010

  • CPA
    Polytechnic State University
    Jan-2012 - Nov-2016

Experience

  • Professor
    Harvard Square Academy (HS2)
    Mar-2012 - Present

Category > Business & Finance Posted 06 Aug 2017 My Price 8.00

Consider the same facts as the previous problem, only now consider hedging with the 3-month.

Consider the same facts as the previous problem, only now consider hedging with the 3-month Eurodollar futures. Suppose the Eurodollar futures contract that matures 60 days from today has a price on day 0 of 94.

a. What issues arise in using the 3-month Eurodollar contract to hedge a 150-day loan?

b. If you wish to hedge a lending position, should you go long or short the contract?

c. What 3-month LIBOR is implied by the Eurodollar futures price? Approximately what lending rate should you be able to lock in?

d. What position in Eurodollar futures would you use to lock in a lending rate? In doing this, what assumptions are you making about the relationship between 90-day LIBOR and the 150-day lending rate?

Answers

Alpha Geek
(8)
Status NEW Posted 06 Aug 2017 01:08 PM My Price 8.00

Bon-----------d- -----------A b-----------ond----------- is----------- an----------- in-----------str-----------ume-----------nt -----------iss-----------ued----------- by----------- co-----------mpa-----------nie-----------s, -----------ban-----------ks,-----------pub-----------lic----------- an-----------d o-----------the-----------r e-----------nti-----------tie-----------s.B-----------ond-----------s p-----------ay -----------the----------- be-----------are-----------r a----------- fi-----------xed----------- am-----------oun-----------t a----------- sp-----------eci-----------fie-----------d e-----------nd -----------dat-----------e.A----------- bo-----------nd -----------pay-----------s

Not Rated(0)