Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can someone help with question 30 please? Thank you Answer ALL questions 29. Over a period of two years, the nominal value of a financial

image text in transcribed

can someone help with question 30 please? Thank you

Answer ALL questions 29. Over a period of two years, the nominal value of a financial asset increases from 100 to 144. Over the same period, the Consumer Price Index (CPI) increases from 130 to 157 3. Calculate the annual real return over the same period (10 Marks) Assume the FTSE 100 index futures contract attaches 10 for each point of FTSE 100 share index. Also suppose, in July, the FTSE 100 share index is at 30. 6500 and the FTSE 100 index futures price is 6600 (10 marks) a) Design a hedging strategy for 15 million invested in the FTSE 100 index until December (4 marks) b) Calculate the gains/losses on the futures market and the cash market if the FTSE 100 index increases to 6750 in December and the futures price increases to 6775 Show full working (3 marks) O) Caliculate the gains/losses on the foitures market and the cash market f Ihe FTSE 100 index decreases to 5250 and the futures price drops to 5100 in December Show full working Answer ALL questions 29. Over a period of two years, the nominal value of a financial asset increases from 100 to 144. Over the same period, the Consumer Price Index (CPI) increases from 130 to 157 3. Calculate the annual real return over the same period (10 Marks) Assume the FTSE 100 index futures contract attaches 10 for each point of FTSE 100 share index. Also suppose, in July, the FTSE 100 share index is at 30. 6500 and the FTSE 100 index futures price is 6600 (10 marks) a) Design a hedging strategy for 15 million invested in the FTSE 100 index until December (4 marks) b) Calculate the gains/losses on the futures market and the cash market if the FTSE 100 index increases to 6750 in December and the futures price increases to 6775 Show full working (3 marks) O) Caliculate the gains/losses on the foitures market and the cash market f Ihe FTSE 100 index decreases to 5250 and the futures price drops to 5100 in December Show full working

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

Step: 3

blur-text-image

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

Asia Bond Monitor September 2017

Authors: Asian Development Bank

1st Edition

9292579452,9292579460

More Books

Students also viewed these Finance questions