Question: w Question Completion Status: O d. 51683 QUESTION 10 Futures prices. Futures contracts are available on 10,000. How much risk-free arbitrage profit could you make
w Question Completion Status: O d. 51683 QUESTION 10 Futures prices. Futures contracts are available on 10,000. How much risk-free arbitrage profit could you make on 1 contract at maturity from this mispricing? Please select the most suitable option Exchange Rate Interest Rate APR SO ($/) $1.48 = 1.00 i$ 4% F360 ($/) $1.45 = 1.00 ie 396 a. $443.68 b. $159.22 None of these options d.$153.10 QUESTION 11 Assume that you will need to buy 13,000 in six months. The current spot exchange rate is $1.76/E, one-month forward rate is $1.78/, six-month forward rate is $1.81/. The six-month interest rate is 5% per annum in Australia and 3% per annum in UK. You can either buy six-month put option on with the exercise rate of $1.75/ for the premium of $0.10/, or six-month call option on E with the exercise rate of $1.80/ for the premium of $0.12/. The expected future spot exchange rate is $1.82/E. What is the expected total dollar cost of buying 13,000 if you choose to hedge via option six month later? Please select the most suitable
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