# Question

Based on the information in Table 16–1on page 417, assume you buy a Nasdaq 100 December contract at the settle price. You hold the contract for one month and suffer a loss of $3,000. What is settle price after one month?

## Answer to relevant Questions

Examine Table 16–1on page 417. Using settle prices, what is the value of the basis for each of the September 2010 and December 2010 DJ Industrial Contracts? Assume the actual DJ is 11,100. What does the security market line indicate? In general terms, how is it different from the capital market line? Using the formulas in Appendix 17B, compute a least squares regression equation for problem 12. (Round beta and alpha to two places after the decimal point.) Using the formula for the capital market line (Formula 17–5 on page 448), if the risk-free rate (RF) is 8 percent, the market rate of return (MK) is 12 percent, the market standard deviation ((M) is 10 percent, and the ...Compute the simple weighted average life for the following data. Use an approach similar to that in Table 18–1 on page 468. Year Cash Flow 1 $ 105 2 105 3 105 4 105 5 105 5 $1,000Post your question

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