Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. please anwser both you decide to short seven july

Please anwser both You decide to short seven July futures contracts of GBP 100,000 each....

80.2K

Verified Solution

Question

Finance

Please anwser both

You decide to short seven July futures contracts of GBP 100,000 each. The spot rate is 0.72 GBP/USD, the 30-day forward rate is 0.70 GBP/USD, your expectation is 0.75 GBP/USD in July. If your expectation proves to be correct, how much profit or loss will you make?

a. USD -21,000

b. USD 21,000

c. GBP -21,000

d. GBP -21,000

  1. Is the following option ITM, ATM or OTM? And what are its payoff (or intrinsic value) and profit or loss, respectively? Long Put, premium CAD0.01, strike rate CAD/USD is 1.30, spot rate CAD/USD is 1.28.

    a. ITM, CAD0.02, CAD0.01 profit

    b. ATM, CAD0.01, CAD0.01 profit

    c. OTM, CAD0.00, CAD0.01 loss

    d. ITM, CAD0.01, CAD0.02 profit

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

What other data or indicator must the technologist use to assess whether or not an insufficient...

Chemistry
Q

what is an exome ? why can exome sequencing be more informative than genome sequencing for...

Biology
Q

A uniform stick with mass m and length I is initially at rest along the...

Physics
Q

Your candy factory makes Sticker Bars and N&N's. For each case of Stickers, you make...

Basic Math
Q

5 Graph the line that has an x intercept of 3 0 and y intercept...

Algebra
Q

fin7 7. R. W. Davis Co. and Oyster Bay Inc. are...

Accounting
Q

EX 6-15 Lower-of-cost-or-market inventory obj. 6 or market. Assemble the data in the form illustrated...

Accounting
Q

Modern Limited. The Company Modern Limited is a family-owned and managed, department store situated in...

Accounting
Q

In December 2016, Custom Mfg. established its predetermined overhead rate for jobs produced during 2017...

Accounting
Q

What are the 3 types of business taxes? Describe each.

Accounting
Q

How are pretax contributions by employees into cafeteria plans presented on a Form 940

Accounting
Q

24. INVENTORY METHODS: Co. A has the following units of purchases, total sales for the...

Accounting