FINA4531
EXAM I:
12:00
SAT.
ROOM:
FALL 2016
OCT 1, 2016
9:30
MH 160
Please bring:
your university student ID card to the exam and
your hand calculator.
You are allowed 2 pages of notes
From my slides:
CH. 2: The entire chapter.
CH. 2: Supplement. The ent
FINA4351
HW. 5.
Due in class on M
OCT 10
Q1.
On Friday, April 4, 2013 you bought shares of the following stocks and you held this portfolio
for a year:
Beta
Prices: 4,4,13
prices: 4,4,14
10,000 shares of IBM (IBM)
= 1.44 S = $80.79
S = $90.45
20,000 of C
FINA4351 HW 3. Due in class: W SEP 21.
Q1.
On September 3, 2008 you invested $1,000 at the annual riskfree rate
on APR
Q2.
dollars
rate
of 5% until APR. 18, 2009. Calculate the amount you will receive
18, 2009 if the annual 5% rate is compounded
1.1 annua
FINA4351
p1/6
HW 2. Due in class:
W SEP 14
Study carefully the paper I handed out is class: Amaranth advisors LLC.
When you read this paper, disregard anything associated with options and
concentrate on the parts that analyze outright speculation and spec
FINA4351
SEP 28
HW 4.
Due in class: W
Study The paper Metallgesellschaft I will cover this paper MON SEP
26 in class. Study CH 3. but not Sec. 3.5.
Q1.Trader A holds a short position in 25 NYMEX Gold futures for MAR
2009. Every contract is for 100 ounces.
FINA7351
HW 2
Q1.
short MAR futures:
$3.00/bushel
long JUN futures:
-$3.50/bushel
t:
Answers:
Spread:
-.50
1.1
The speculator must unwind the positions:
long MAR futures:
$3.05/bushel
short JUN futures:
$3.25/bushel
Spread
.20
LOSS:
$.30/bushel
1.2
The sp
FINA4351
HW No. 1
P1/2
Due: WED, SEP 7, in class.
Study my slides and the following Sections in the
textbook:
CH 2.Sections: 2.1 2.7
Answer the problems from the textbook on this page
and the 7th problem on the next page:
Q1:
Q2:
Q3:
Q4:
Q5:
Q6:
Q7:
Probl
FINA4351 HW 3.
Due in class: W SEP 21.
Q1.
On September 3, 2008 you invested $1,000 at the annual risk-free rate of 5% until APR. 18,
2009. Calculate the amount you will receive on APR 18, 2009 if the annual 5% rate is compounded
1.1 annually; 1000(1+0.05
HW No. 1 ANS
Q1:
2.10
Margin is the sum of money deposited by a trader with his/her broker.
It acts as a guarantee that the trader can cover any losses on the futures
contract. If losses are above a certain level, the trader is required to
deposit more mo
FINA7531 ANS.
Q1.
EXAM 2.
Analyze in detail all aspects of the following statement:
When you open a futures position you lock yourself into a fixed price and thus, all price
risk is eliminated.
All price risk is eliminated when a futures position is open
FINA4531
FALL 2013
EXAM I,
You must write only on one side of the page.
You must start the answer to every question on a new page.
You must answer all six questions.
The exam ends at 12:00.
You must use only the paper provided by the school.
Show and expl
FINA4351
Q1.
now
HW. 7.
5.12
ANS
Use a time table to show the arbitrager activities
and at delivery and calculate the arbitrage profit.
The theoretical, no-arbitrage futures prices is:
400e(.1 - .04)(4/12) = 408.08
405 < 408.08
The actual market futures p
FINA4351
Q1.
HW 6
ANS
3.22
n* = h*(NS/NF)
n* = (S,F)(S/F)(NS/NF)
But, because the spot price has a standard deviation 50% higher than the
futures price the ratio of
S/F is 1.50. Thus:
n* =(.6)(1.5)100,000,000/42,000 = 2142.86.
n* = 2143.
Q2.
3.23
The expe
FINA4351
Q1.
3.12
Q2.
3.13
Q3.
3.19
Q4.
5.17
HW 6. Due: W OCT 19
Q5.
A US importer will purchase 500 Italian sport cars on the 15 th of
FEB, APR, JUL and OCT of 2017. The price is fixed at EUR40,000/car.
5.1
5.2
What is the risk born by the US importer?
I
EXAMPLE of Previous EXAM
The four questions are pertaining to our
exam.
Print your name:_
Answer all the 4 problems.
All questions carry the Same weight.
Write only on one side of the page.
The exam ends at 12:00.
Cellular phones are
not permitted
in the
FINA4531
FALL 2015
EXAM III:
DATE: WED. NOV 30, 2016
TIME: 2:30 3:55
class
ROOM:
in
Please bring your university student ID card to the exam. Also, 2 pages
(four sides) of your notes and a hand calculator.
Material from my slides:
Chapter 3.
Hedging.
Chap
Q4.
Airline JJJ wishes to hedge its Jet fuel purchase (on date k) and
opens a hedge today, t.
There exists no jet fuel futures contract thus, JJJ hedge is done with
the NYMEX heating oil contract. Later, on date k, the airline closes
the hedge.
Use our us
Rafael Zamora
Extra Credit
God in America1. A Nation Reborn (3)
There was much disagreement of what Gods purpose was, or what he wanted, but
most people believed he had a very special purpose for us.
In America, Methodists have the single largest religio
FINA4531
SAT.
EXAM II
OCT 22 2016
FALL 2016
TIME: 9:30 12:00
ROOM:
MH 160
Bring your hand calculator and you are also allowed 2 pages (4 sides) of
your notes.
Material:
Chapter 2.
Chapter 3.
From my slides:
The mechanics of futures markets. The entire cha
FINA4531
Answers to First exam,
Fall 2013
Q1.
1.1 What is the clearinghouse guarantee to traders in the futures
market?
1.2 Explain in detail how this guarantee solves the liquidity problem that
exists in the
forwards market.
Answer: 1.1 The clearinghouse
Hedgers open positions in the future marker in order to eliminate the risk associated with the
SPOT PRICE of the underlying asset. A perfect hedge is one that completely eliminates the risk.
SPOT PRICE: current market price at which an asset can be bought