Unformatted text preview: relationship • between the exchange rates in his home country and the country of his investment change 7 Problems - 4 of them on short selling (Each problem will be worth 1 point) 1. Municipal vs Corporate bonds (1 point) 2. Calculate the value of a value weighted index after one of its stocks had a split (2 points) 3. Short selling problem with 4 parts. You should know how to calculate a) the maximum amount the investor can borrow and the minimum the investor needs to deposit (based on the initial margin) b) the margin c) the maximum price the stock can rise before receiving a call and d) additional funds needed. (4 points) 4. Total returns (in terms of dollars) when investing abroad (similar to the problem we did in class for chapter 6) (1 point)...
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- Spring '08
- Finance, Collective investment scheme