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Question 4 5 pts The DEAR of a bank's trading portfolio has been estimated at $10,000. It is assumed that daily earnings are independently and
Question 4 5 pts The DEAR of a bank's trading portfolio has been estimated at $10,000. It is assumed that daily earnings are independently and normally distributed. What is the 25-day VAR? $50,000 $25,000 None $250,000 $5,000 Question 5 5 pts If the required margin for a futures contract is 40% of the position's value. You take a long position on the futures. The value of position initially is $1,000. When the futures price falls to $800, how much should you deposit to the margin account? $100 $210 $120 $140 Question 6 5 pts The current spot price of oil is $20 per barrel, the interest rate is 5%, and the cost of storing and insuring oil for one year is 3% of the value of the oil. What would be the no arbitrage futures price today on a contract that expires one year from now? $12.96 $13.20 $21.60 $13.08 O None
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