Question 25 1 pts We'R'Scared, a US-based MNC, will need 500,000 a year from now, and decides to lock into a rate of 2$/ (which happens to be the current spot price) and purchase a futures contract right now (assume a single contract with a size of 500,000). The initial margin on the contract is 10%, and the maintenance margin is 5%. On the first day of the contract, the pound loses $0.03 in the spot market, and drops to $1.97. It continues to lose $0.03 per day for the next 10 days. We'R'Scared will receive the first margin call at the end of day 05 0.7 O 2 8 04 3 10 Question 26 1 pts We'R'Scared, a US-based MNC, will need 500,000 a year from now, and decides to lock into a rate of 2$/ (which happens to be the current spot price) and purchase a futures contract right now (assume a single contract with a size of 500,000). The initial margin on the contract is 10%, and the maintenance margin is 5%. On the first day of the contract, the pound loses $0.06 in the spot market, and drops to $1.94. It continues to lose $0.06 per day for the next 10 days. We'R'Scared will receive the first margin call equal to $ O 20000 10000 O 70000 O 50000 30000 90000 100000 60000 80000 40000 Question 27 1 pts One year ago, you sold a futures contract on 100,000 euros with a settlement date of one year. Assume that one year ago, the spot rate of the euro was $1.30, the one-year forward rate exhibited a discount of 5 percent, and the one-year futures price was the same as the one-year forward rate. From one year ago to today, the euro depreciated against the dollar by 10 percent. The total dollar amount of your profit or loss is $ (negative number indicates a loss). O 6500 O 7500 O-7500 0 -7000 6000 0-6000 -6500 -8000 7000 B000 Question 28 1 pts One year ago, you sold a put option on 100,000 euros with an expiration date of one year. You received a premium on the put option of $.05 per unit. The exercise price was $1.24. Assume that one year ago, the spot rate of the euro was $1.20. From one year ago to today, the euro depreciated against the dollar by 10 percent. Today the put option will be exercised (if it is feasible for the buyer to do so). The total dollar amount of your profit or loss is $ (negative number indicates a loss). 0 -11000 O 10000 -14000 0 -15000 O 11000 -13000 0-10000 13000 12000 14000 15000 - 12000 Question 25 1 pts We'R'Scared, a US-based MNC, will need 500,000 a year from now, and decides to lock into a rate of 2$/ (which happens to be the current spot price) and purchase a futures contract right now (assume a single contract with a size of 500,000). The initial margin on the contract is 10%, and the maintenance margin is 5%. On the first day of the contract, the pound loses $0.03 in the spot market, and drops to $1.97. It continues to lose $0.03 per day for the next 10 days. We'R'Scared will receive the first margin call at the end of day 05 0.7 O 2 8 04 3 10 Question 26 1 pts We'R'Scared, a US-based MNC, will need 500,000 a year from now, and decides to lock into a rate of 2$/ (which happens to be the current spot price) and purchase a futures contract right now (assume a single contract with a size of 500,000). The initial margin on the contract is 10%, and the maintenance margin is 5%. On the first day of the contract, the pound loses $0.06 in the spot market, and drops to $1.94. It continues to lose $0.06 per day for the next 10 days. We'R'Scared will receive the first margin call equal to $ O 20000 10000 O 70000 O 50000 30000 90000 100000 60000 80000 40000 Question 27 1 pts One year ago, you sold a futures contract on 100,000 euros with a settlement date of one year. Assume that one year ago, the spot rate of the euro was $1.30, the one-year forward rate exhibited a discount of 5 percent, and the one-year futures price was the same as the one-year forward rate. From one year ago to today, the euro depreciated against the dollar by 10 percent. The total dollar amount of your profit or loss is $ (negative number indicates a loss). O 6500 O 7500 O-7500 0 -7000 6000 0-6000 -6500 -8000 7000 B000 Question 28 1 pts One year ago, you sold a put option on 100,000 euros with an expiration date of one year. You received a premium on the put option of $.05 per unit. The exercise price was $1.24. Assume that one year ago, the spot rate of the euro was $1.20. From one year ago to today, the euro depreciated against the dollar by 10 percent. Today the put option will be exercised (if it is feasible for the buyer to do so). The total dollar amount of your profit or loss is $ (negative number indicates a loss). 0 -11000 O 10000 -14000 0 -15000 O 11000 -13000 0-10000 13000 12000 14000 15000 - 12000
