An off-market forward contract is a forward where either you have to pay a premium or you receive a premium for entering into the contract. (With a standard forward contract, the premium is zero.) Suppose the effective annual interest rate is 10% and the S&R index is 1000. Consider 1-year forward contracts. a. Verify that if the forward price is $1100, the profit diagrams for the index and the 1-year forward are the same. b. Suppose you are offered a long forward contract at a forward price of $1200. How much would you need to be paid to enter into this contract? c. Suppose you are offered a long forward contract at $1000. What would you be willing to pay to enter into this forward contract
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Business, 21.06.2019 18:20
James sebenius, in his harvard business review article: six habits of merely effective negotiators, identifies six mistakes that negotiators make that keep them from solving the right problem. identify which mistake is being described. striving for a βwin-winβ agreement results in differences being overlooked that may result in joint gains.
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Business, 22.06.2019 07:50
The questions of economics address which of the following ? check all that apply
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Business, 22.06.2019 11:20
Aborrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. the first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 5% annual payment cap. on the reset date, the composite rate is 6%. what would the year 3 monthly payment be?
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Business, 22.06.2019 20:50
Which of the following statements regarding the southern economy at the end of the nineteenth century is accurate? the south was producing as much cotton as it had before the civil war.
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An off-market forward contract is a forward where either you have to pay a premium or you receive a...
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