Forwards and Futures - Questions and Answers
About the Lecture
The lecture Forwards and Futures - Questions and Answers by Edu Pristine is from the course ARCHIV Financial Instruments. It contains the following chapters:
- Questions and Answers
Author of lecture Forwards and Futures - Questions and Answers
Edu Pristine
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Excerpts from the accompanying material
... and Beta of portfolio = 1.2 a) A long position in 14 contracts b) A short position in 14 contracts c) A long position in 10 contracts d) A short position in 10 contracts Answer: F = 250 ×1500 = 375,000 For a complete hedge requires (1.2 ×8,750,000/375,000) = 28 contracts need to be shorted. ...
... as a) Future price of asset to be hedged –Futures price of contract used b) Future price of asset to be hedged –Spot price of contract used c) Spot price of asset to be hedged –Futures ...
... LIBOR future rate for the 90-to 180-day period: a) 3.7% b) 3.2% c) 4.8% d) 6.4% Answer: Option ‘a’ Since, Eurodollar future quote is 86 i.e. (100 -R), where R is the LIBOR future interest ...
