Question: 21.-Explain the difference between a put option and a short position in a futures contract. 10. You are bearish on Telecom and decide to sell

21.-Explain the difference between a put option and a short position in a futures contract.

10. You are bearish on Telecom and decide to sell short 100 shares at the current market price of $50 per share.

16. The New Fund had average daily assets of $2.2 billion last year. The fund sold $400 million worth of stock and purchased $500 million during the year. What was its turnover ratio?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

please help 1. Explain the difference between a put option and a short position in a futures contract. (1 Point) 2. Which security should sell at a greater price? (2 Points) a. A 10 -year Treasury...

MODULE CODE: 44-700131-BF-2020 QUESTION 1 (6 marks) Use the following information for a bond to calculate: a) the Macaulay Duration of the bond and; b) the Modified Duration of the bond explaining...

1. A U.S. company is going to receive Euro 1M in 3 months. Which change of the exchange rate of Euro against USD is favorable to the co.? a. Depreciation of Euro against USD. b. Appreciation of Euro...

1. The net operating cycle equals 10 (minus 10). Which if the following responses are the correct one (2 Points) It is a result of a situation in which number of days in inventory equals to 30 days...

i need answer from 4 to 10 A U.S. company has issued floating-rate notes with a maturity of 10 years, aninterest rate of (6-month LIBOR+0.15%), and total face value of $10 million. The companynow...

Analyse and discuss the most common hedging techniques and how they can be used to mitigate interest rate, foreign exchange and commodity price risk to a multinational corporation. In what instances...

(27 points) Assume you are a trader with Deutsche Bank. From the quote screen on your computer terminal, you notice that Dresdner Bank is quoting 0.7627/$1.00 and Credit Suisse is offering...

(27 points) Assume you are a trader with Deutsche Bank. From the quote screen on your computer terminal, you notice that Dresdner Bank is quoting ?0.7627/$1.00 and Credit Suisse is offering...

Need the excel file named "September Oil Futures" in attaches. 1)For this question, refer to the first tab, "Price History", which lists a fictitious set of prices for Jan '18 oil futures during the...

Question 1(5 points) Silver is currently trading for $18.32 an ounce, while the six- month futures price is $18.54. If you believe that silver will actually sell for $18.89 in six months, which of...

If you vigorously shake a can of chicken broth back and forth for more than a minute, will the temperature of the broth increase?

Additional Funds Needed Garlington Technologies Inc.'s 2009 financial statements are shown below: Suppose that in 2010 sales increase by 10% over 2009 sales and that 2010 dividends will increase to...

Qurtion 2 2 - Gam 2 - Corved Fram 2 6 Hely 5 ve 4 Knt Subent 2 2 As you lengthen the time horizon of your investment period and decide to invest for multiple years, you will find that: The average...

A bond with a coupon rate of 6 % makes semiannual coupon payments on January 1 5 and July 1 5 of each year. The Wall Street Journal reports the ask price for the bond on January 3 0 at 1 0 0 . 2 5 0...