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Econ Homework - Jonathan Sadow ECON 121 Homework Assignment...

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Jonathan Sadow ECON 121 4/25/08 Homework Assignment Part 1: Newspaper (Wall Street Journal) 1. Security Rates Prime Rate: 5.25 Fed Funds Rate: 2.25 Treasury Bill: 3.340 Fannie Mae: 5.230 LIBOR: 2.92 Dealer Commercial Paper (30 Day, Latest): 2.89 2. New Security American Water Works Company (AWK). Stock debut was on 4/23/08, at a released price of $21.50 per share on the NYSE. The IPO raised around 1.25 Billion, and the company’s last fiscal year sales totaled nearly 2.1 Billion. After its first day of trading, it closed at $20.60, a loss of 90 cents. s See attached paper. Sensex 30 Index (India) – It appears that they are preparing for corporate earnings reports and they are anticipating worse news than originally anticipated. As explained in the article they believe this is due to foreign-exchange derivatives and the other line marked “other income”. This could cause harder ache for international investors as the woes will continue for the Indian stock market. Last year this same index was believed to be one of the best in the world; however, it has tumbled 17% already this year, and many analysts see more big drops in the future. Accounting standard setters indicated that they will tighten rules surround the use of foreign-exchange derivatives. As far as “other income” goes, people in India are more aggressive in the stock market than in other places, and since it has fallen sharply this is not a good sign in the future Shanghai SE Composite Index (China) – The index has been slumping lately and they have begun trying any means to raise it before the 2008 summer Olympics.
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They have limited big share sales in order to cool the invest concerns about the market. The index had rebounded and rose 1% on Tuesday the 22 nd . If gains remain moderate and they struggle to improve officials may continue to make measures to improve the index, this could involve cutting taxes on stock transactions. This action would indicate that politics in the region remain the biggest driver in China’s nascent capital markets. Russia: 23.332 ruble per US dollar Russia: .04286 ruble in US Russia: US$ vs, YTD chg(%) -5% The information provided tells you how many of each currency it takes to make one US dollar and it tells you how far the currency will get you in the country. Lastly it tells you the percent change it has fluctuated this year. This year the dollar has gotten worse compared to the ruble. Index Futures DJ Industrial Average (CBT) -$10 x Index June Open: 12804 High: 12836 Low: 12655 Settle: 12736 Chg: -72 Open Interest: 27156 The contract term is up in June. The commodities report contains all that information from all sorts of different types of futures including: Metal and Petroleum Futures, Agriculture Futures, Interest Rate Futures, Currency Futures, and Index Futures. Some futures have the same contract terms but many differ in their length. Some are much shorter than others.
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