The spot price for smoked salmon is $5,000 per ton and its six-month futures price is $4,800. The monthly interest rate is .0025 (.25%). What is the average monthly net convenience yield on smoked salmon for the next six months?
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The spot price for smoked salmon is $5,000 per ton and its six-month futures price is $4,800. The monthly interest rate is .0025 (.25%).
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What is the average monthly net convenience yield on smoked salmon for the next six months?
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- The spot price for smoked salmon is $5,000 per ton and its six-month futures price is $4,800. The monthly interest rate is .0025 (.25%). What is the average monthly net convenience yield on smoked salmon for the next six months? 2. If you are a manager of Bread&Circus and need 10 tons of smoked salmon in six months. How can you avoid the risk in the price of smoked salmon over the next six months using futures? 3. Suppose that your net convenience yield for smoked salmon is 1.2%. How does this change your hedging strategThe spot price for smoked salmon is $5,000 per ton and its six-month futures price is $4,800. The monthly interest rate is .0025 (.25%). What is the average monthly net convenience yield on smoked salmon for the next six months? If you are a manager of Bread&Circusand need 10 tons of smoked salmon in six months. How can you avoid the risk in the price of smoked salmon over the next six months using futures? Suppose that your net convenience yield for smoked salmon is 1.2%. How does this change your hedging strategyThe annual payment of a 10-year fixed-income security is $50. The payments are made at the end of each year. The market-required rate of return is 10%. What is the current price of the securities?
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- The spot price of the market index is $900. After 3 months the market index is priced at $920. The annual rate of interest on treasuries is 4.8% (0.4% per month). The premium on the long put, with an exercise price of $930, is $8.00. Draw the payoff graph for the long put position at expiration. Include strike price, breakeven price, and max lossThe spot price of the market index is $900. After 3 months the market index is priced at $920. The annual rate of interest on treasuries is 4.8%(0.4% per month).The premium on the long put, with an exercise price of $930, is $8.00. Draw the payoff graph for the long put position at expiration.Include strike price,breakeven price, and max loss.The current price of silver is $30 per ounce. The storage costs are $0.48 per ounce per year payable quarterly in advance. Assuming that interest rates are 10% per annum for all maturities; calculate the futures pre of silver for delivery in nine months, if the storage cost is $4 for the same period?
- An asset currently costs $432. The risk-free rate in the economy is 2.8% per year. What should be the price of a newly-created futures contract on this asset if the futures contract matures in 8 months? Round to the nearest penny. the answer should be 440.03. How do you get that?The promissory note with a face value of 500,000 has 45 days until maturity. If the relevant yield is 7% then what is the current price of this promissory note?Suppose investors can earn a return of 1.9% per 6 months on a Treasury note with 6 months remaining until maturity. The face value of the T-bill is $10,000. What price would you expect a 6-month maturity Treasury bill to sell for? (Round your answer to 2 decimal places.)