Alpha Romeo LLC has just recruited you as the junior derivatives analyst of their New Zealand's...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Alpha Romeo LLC has just recruited you as the junior derivatives analyst of their New Zealand's office. You have been assigned to analyse the impact of the following clients' futures contracts, who are all trading on the same S&P500 Index futures contract of the Chicago Mercantile Exchange (CME). The market value of each futures contract is currently priced at $1000 with a notional value of $250,000. The following four transactions took place yesterday: Client Abdullah went long 75 futures contracts with Client Benjamin. Client Abdullah went long 85 futures contracts with Client Charlie. Client Benjamin went long 100 futures contracts with Client Charlie. Client Charlie went long 200 contracts with Client Abdullah. (a) Estimate each client's net position at the end of yesterday. (b) Estimate the trading volume and open interest of the S&P500 Index futures contract. (c) Estimate the notional values of trading volume and open interest. (d) If there was an additional transaction, whereby, Charlie went long 30 contracts with Benjamin, how would the answers to (a), (b) and (c) change? Show clearly your workings. (e) What is the main difference between a Mini S&P500 Index futures contract and the S&P500 Index futures contract? Alpha Romeo LLC has just recruited you as the junior derivatives analyst of their New Zealand's office. You have been assigned to analyse the impact of the following clients' futures contracts, who are all trading on the same S&P500 Index futures contract of the Chicago Mercantile Exchange (CME). The market value of each futures contract is currently priced at $1000 with a notional value of $250,000. The following four transactions took place yesterday: Client Abdullah went long 75 futures contracts with Client Benjamin. Client Abdullah went long 85 futures contracts with Client Charlie. Client Benjamin went long 100 futures contracts with Client Charlie. Client Charlie went long 200 contracts with Client Abdullah. (a) Estimate each client's net position at the end of yesterday. (b) Estimate the trading volume and open interest of the S&P500 Index futures contract. (c) Estimate the notional values of trading volume and open interest. (d) If there was an additional transaction, whereby, Charlie went long 30 contracts with Benjamin, how would the answers to (a), (b) and (c) change? Show clearly your workings. (e) What is the main difference between a Mini S&P500 Index futures contract and the S&P500 Index futures contract?
Expert Answer:
Answer rating: 100% (QA)
a Net position for each client at the end of yesterday Client Abdullah Long 75 contracts Short 200 contracts Short 125 contracts Client Benjamin Long ... View the full answer
Related Book For
Auditing An International Approach
ISBN: 978-0071051415
6th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley
Posted Date:
Students also viewed these finance questions
-
You have been assigned to the audit of the financial statements of Office Moving and Storage Limited (OMS) for its year ending December 31, 20X2. The company started 10 years ago and is in the...
-
1. Hannah is applying for a life policy on her girlfriend Sarahs life. The policy is $500,000 and carries a large premium. Hannah is the main earner, so she is concerned about not being able to pay...
-
You have joined a public accounting firm as a junior auditor and have been assigned to the audit team for one of your firms largest audit engagements, Cold Beverages Corp. (CB), a large public...
-
Draw isometric projection of the following figure 10 40 50 $30 Pg. 3 : 20
-
An ideal refrigerator does 150 J of work to remove 560 J as heat from its cold compartment. (a) What is the refrigerator's coefficient of performance? (b) How much heat per cycle is exhausted to the...
-
In the PCB described in Problem 9.63, it is desired to reduce the displacement transmissibility to a value of 0.25. If the chassis mass is 50 percent of the mass of the PCB, determine the necessary...
-
Washington Mutual Insurance Company issued an \(\$ 80,000,7 \%, 10\)-vear bond payable at a price of 110 on January 1, 2009. Journalize the following transactions for Washington. Include an...
-
As the HR manager, you have heard rumors about potential efforts to unionize your warehouse employees. Use the www.genelevine .com website to develop a set of guidelines for supervisors if they are...
-
Ingrid plans to live for two periods and only cares about consumption in the second period. She is considering studying towards a postgraduate degree in the first period. If she does it, it's going...
-
The Silver Star Bicycle Company will be manufacturing mens and womens models of its Easy-Pedal 10-speed bicycle during the next two months, and the company would like a production schedule indicating...
-
i Xxi Yi 1 2 3 5 -4 -3 0 0 0 Consider the data points 67 8 9 10 11 1 2 3 4 0 0 0 0 0 4 5 -2 -1 0 1 1 1 (a) Find the 10th degree polynomial, P0(x), fit for the above data. (b) Find the 7th degree...
-
The effects of international trade on a countrys development are often related to four basic economic concepts: efficiency, growth, equity, and stability. Briefly explain what is meant by each of...
-
How would you explain the fact that relative costs of and returns to higher education are so much higher in developing than in developed countries?
-
What makes for: (a) A good and fair health system and (b) A good and fair education system?
-
In what ways can developed nations best contribute to the alleviation of global and domestic environmental problems? Be specific.
-
What are some of the difficulties associated with the establishment of market economies in developing countries? In what type of country is the market more likely to succeed? Why?
-
Your gross income is $83 thousand. The standard deduction is $12000. You contributed $16 thousand to your traditional 401k, and your employer made a matching contribution of 50 cents on the dollar....
-
What is a manufacturing system?
-
What is the difference between inspection and re-performance in control testing?
-
What are the five basic components of internal control?
-
How do fraud considerations relate to the auditors materiality decision?
-
Use data from Appendix \(C\) to choose points from the performance curves for a Peerless horizontal split case Type 16A18B pump at 705 and 880 nominal rpm. Obtain and plot curve-fits of total head...
-
An axial-flow fan operates in sea-level air at \(1350 \mathrm{rpm}\) and has a blade tip diameter of \(3 \mathrm{ft}\) and a root diameter of \(2.5 \mathrm{ft}\). The inlet angles are...
-
Data from tests of a water suction pump operated at \(2000 \mathrm{rpm}\) with a 12 -in.-diameter impeller are Plot the performance curves for this pump; include a curve of efficiency versus volume...
Study smarter with the SolutionInn App