Your old friend, Alex Mason, is a forwards and futures trader at Goldman Sachs. You look up his

quotes for Capital Ventures. Capital Ventures is trading at $472.91, the monthly risk-free rate is

0.25% per month and Mason is quoting a forward price of $480.08 for a 6 month forward contract.

Capital Ventures is not expected to pay a dividend in the next 6 months.

1. Is there an arbitrage opportunity?

2. What steps should you take to realize the arbitrage profits?

3. What are the arbitrage profits per share of Capital Ventures that could be realized today?

Your manager has asked you look into the basic properties of single stock options trading in the US.

The firm is considering investing in options as an alternative to investing the underlying equities. Select

a large cap US stock and find information about the equity options that are being traded on that stock

using Yahoo Finance.

4. Consider all the call options being traded on the stock.

a. How does the option premium change as the strike price increases? Why?

b. Holding the strike price constant, how does the option premium change as the duration

of the option increases? Why?

5. Consider all the put options being traded on the stock.

a. How does the option premium change as the strike price increases? Why?

b. Holding the strike price constant, how does the option premium change as the duration

of the option increases? Why?

Please paste in a copy of the Yahoo Finance screens into your document showing the prices that you

discuss in your answers

Suppose a toy craze in Canada makes a particular Swiss-produced toy very popular. What effect would this toy have on the balance of trade? It would tend to affect Canada's balance of payments but not its balance of trade It would tend to increase Canada's balance of trade deficit. It would tend to reduce any existing balance of trade deficit in Canada. It would tend to increase Canada's balance of trade surplus. Suppose the exchange rate between British pounds and Canadian dollars is originally $1.50 per pound. If it then changes to $2 for 1 pound, what will tend to happen to the volume of imports of British goods into Canada? The volume of imports will tend to rise The volume of imports will tend to change in an indeterminate direction The volume of imports will tend to fall. O The volume of imports will tend to stay the sameCompound Interest O Calculate periodically compounded interest Question George invested $4400 in an account with annually compounded interest. After 5 years, he had $5790 in the account. What was the interest rate of the account? Round your answer to one decimal place. Do not write the percent sign. Provide your answer below.John invested 32000 that earns interest at 4% p.a. compounded monthly. Two years later, the interest rate is changed to 4.50% compounded quarterly. Determine the accumulated value of the investment two years after the change. Consider the following information related to the balance of payments, Make sure you understand that these are the dollar values of each Item. You will need to think about whether they show up as a positive or a negative value in the balance of payments. Give all answers to two decimals, Item (in millions of dollars) Exports of goods and services 300.00 Foreign-owned financial assets in U.S. 180.00 Foreign-owned real assets in U.S. 267.00 Imports of goods and services 390.00 Income payments 150.00 Income receipts 225.00 U.S.-owned financial assets abroad 312.00 U.S.-owned real assets abroad 120.00 The trade balance is million dollars.Which of the following is true of financial accounting? Financial accounting reports are internal reports issued as frequently as the need arises. Financial accounting reports provide special purpose information for a particular user for a specific decision. Financial accounting reports are required simply to be useful to the decision maker. C Financial accounting reports of publicly traded companies require an independent audit