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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
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 workingStep by Step Solution
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