FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume u have a portfolio with 22,000,000 in MV and u buy a CDS with SD of 3 years and principal of 10,000,000 If the

image text in transcribed
Assume u have a portfolio with 22,000,000 in MV and u buy a CDS with SD of 3 years and principal of 10,000,000 If the SD of the portfolio is 10 years and the spread moves up by 100 bps what will be the change in the overall MV of the entire package? 1,900,0003,200,000+1,500,000 NONE OF THE ABOVE

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Futures And Options Markets

Fundamentals Of Futures And Options Markets

Authors: John C. Hull

7th Edition

0136103227, 9780136103226

More Books

Students also viewed these Finance questions

Question

★★★★★
National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $500,000 on January 1, 2018. The bonds mature on December 31, 2021 (4 years). For bonds of similar risk and maturity...

Answered: 1 week ago

Question

★★★★★
Which element has the smallest atomic radius? a) C b) Si c) Be d) F

Answered: 1 week ago

Question

★★★★★
=+ (d) Show that the unit sphere in R* has volume (see Example 18.5) (18.19) Tk/2 VAT(k/2) + 1)

Answered: 1 week ago

Question

★★★★★
A study found that, in 2005, 12.5% of U.S. workers belonged to unions (The Wall Street Journal, January 21, 2006). Suppose a sample of 400 U.S. workers is collected in 2006 to determine whether union...

Answered: 1 week ago

Question

★★★★★
The display field of view ( DFOV ) can ( SFOV ) . the scan field of view

Answered: 1 week ago

Question

★★★★★
True/False: Affirmative Action is a policy designed to alleviate demand side discrimination.

Answered: 1 week ago

Question

★★★★★
1. A source of yellow light ( = 570 nm) produces interference through two narrow slits separated by a distance of 0.01cm. A screen is placed 3m away. a. How far from the central max is the fifth...

Answered: 1 week ago

Question

★★★★★
You are revising your company's talent acquisition strategy to make it more competitive and appealing to potential candidates. Part of your strategy involves clearly presenting the compensation...

Answered: 1 week ago

Question

★★★★★
Inventory Land Book Value Fair Value $ 630,000 $ 600,000 750,000 990,000 1,700,000 2,000,000 Buildings Customer relationships Accounts payable 0 (80,000) Common stock (2,000,000) Additional paid-in...

Answered: 1 week ago

Question

★★★★★
The standard Treasury Bond futures contract has a face value of $100,000, at least 15 years to maturity and a coupon of 6%, payable semi-annually. The quoted price of the futures contract is based on...

Answered: 1 week ago

Question

★★★★★
15. What option allows the scheduler to go in and look at the information "behind" the scheduled appointments? For example, date "appointment made", wait times, service connection, etc).

Answered: 1 week ago

Question

★★★★★
=+2. How can the revenue model of the music industry be described?

Answered: 1 week ago

Question

★★★★★
=+1. What constitutes the value chain of the Internet media? Please state examples for each stage!

Answered: 1 week ago

Question

★★★★★
=+2. The value chains in the game software and game console hardware industry have certain things in common. Which ones are relevant for a cooperative or rather integrated success?

Answered: 1 week ago

Previous Question Next Question