Forward contract and pricing

Related BrainMass Solutions

• Expected return, Standard Deviation, Forward Contract

  What is the forward price of your contract? b. Suppose both the 1-year and 11-year spot rates unexpectedly shift downward by 1 percent. What is the price of a forward contract otherwise identical to yours? a.

• Spot and Forward Prices

  Spot-Forward Pricing Parity Concept Spot- forward pricing parity concept is a term used in forward contracts for valuation of underlying assets.

• T-bill Interest Rates to Determine Future Contract Rates

  (a) In perfectly efficient markets and risk-neutral pricing, what yield should you expect to find on a 3 month T-bill forward contract deliverable in 3 months?

• Financial derivatives

  Reference: http://biz-zone.info/forward-and-futures-prices/ Now, let us understand the options such as puts and calls. The pricing of options also depend on the price of the underlying security.

• Finance Problems/Questions

  What is the forward price of your contract? b. Suppose both the 1-year and 11-year spot rates unexpectedly shift downward by 2 percent. What is the price of a forward contract otherwise identical to yours? --- Please see the attached file.

• Bond pricing, hedging using futures and forward, duration

  forward contract= Fall in the price of the underlying bond) Answer: Amount of money made on the forward contract= $103,740 Answers questions on Bond pricing, yield to maturity, duration, hedging using futures and forward contracts.

• Finance Questions

  What is the forward price of your contract? b. Suppose both the spot rates unexpectedly shift downward by 1 percent. What is the price of a forward contract otherwise identical to yours?

• CAPM, Futures contract, Payoff on option strategy

  The forward price is lower than the spot price because the market anticipates a sharp decline in the price of Digital stock, and the contract offers a way to hedge this risk. There is no arbitrage opportunity." 6.

• Calculate the expected return and standard deviation of a portfolio that is composed fo 35 percent A and 65 percent B when the correlation between the returns on A and B is 0.6.

  What is the forward price of your contract? Suppose both the spot rates unexpectedly shift downward by 1%. What is the price of a forward contract otherwise identical to yours? a.