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Consider the commodities and financial assets listed in the following table: Asset Comments Magnoosium Spot Price $2,800 per ton $0.44 per bushel Net convenience yield
Consider the commodities and financial assets listed in the following table: Asset Comments Magnoosium Spot Price $2,800 per ton $0.44 per bushel Net convenience yield = 4% per year Oat bran Net convenience yield = 0.5% per month Dividend = 0 Biotech stock index $140.2 Allen Wrench Co. common stock $58.00 Cash dividend = $2.40 per year 5-year Treasury note $108.93 8% coupon Westonian ruple 3.1 ruples = $1 12% interest rate in ruples The risk-free interest rate is 6% a year, and the term structure is flat. a. Calculate the six-month futures price for each case. (Do not round intermediate calculations. Round the Westonian ruple value to 3 decimal places and the other answers to 2 decimal places.) Asset Future Price Magnoosium per ton per bushel Oat bran Biotech stock index Allen Wrench Co. common stock 5-year Treasury note Westonian ruple ruples/$ e. Suppose Allen Wrench stock falls suddenly by $10 per share. Investors are confident that the cash dividend will not be reduced. What happens to the futures price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) The futures price will fall to Consider the commodities and financial assets listed in the following table: Asset Comments Magnoosium Spot Price $2,800 per ton $0.44 per bushel Net convenience yield = 4% per year Oat bran Net convenience yield = 0.5% per month Dividend = 0 Biotech stock index $140.2 Allen Wrench Co. common stock $58.00 Cash dividend = $2.40 per year 5-year Treasury note $108.93 8% coupon Westonian ruple 3.1 ruples = $1 12% interest rate in ruples The risk-free interest rate is 6% a year, and the term structure is flat. a. Calculate the six-month futures price for each case. (Do not round intermediate calculations. Round the Westonian ruple value to 3 decimal places and the other answers to 2 decimal places.) Asset Future Price Magnoosium per ton per bushel Oat bran Biotech stock index Allen Wrench Co. common stock 5-year Treasury note Westonian ruple ruples/$ e. Suppose Allen Wrench stock falls suddenly by $10 per share. Investors are confident that the cash dividend will not be reduced. What happens to the futures price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) The futures price will fall to
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