Assignment 2
Note: Please staple your answer sheets together. Please show all working when
applicable.
1. The standard deviation of monthly changes in the spot price of live cattle is (in cents
per pound) 1.2. The standard deviation of monthly changes in
NAME:
SIGNATURE:
Oakland University
FIN 480/680
Winter 2013
Instructor: Dr. Ranadeb Chaudhuri
EXAM 2
INSTRUCTIONS:
1.
Make sure you write your name very clearly.
2.
Do all your work on the exam booklet; do not detach any pages from the exam booklet.
3.
Yo
NAME:
SIGNATURE:
Oakland University
FIN 480/680
Winter 2013
Instructor: Dr. Ranadeb Chaudhuri
EXAM 1
INSTRUCTIONS:
1.
Make sure you write your name very clearly.
2.
Do all your work on the exam booklet; do not detach any pages from the exam booklet.
3.
Yo
Assignment 5
Note: Please staple your answer sheets together. Please show all working when
applicable.
1. What is the price of a European put option on a non-dividend-paying stock when the
stock price is $69, the strike price is $70, the risk-free interes
Assignment 4
Note: Please staple your answer sheets together. Please show all working when
applicable.
1. A stock price is currently $50. It is known that at the end of two months it will be
either $53 or $48. The risk-free interest rate is 10% per annum
Assignment 3
Note: Please staple your answer sheets together. Please show all working when
applicable.
1. A one-month European put option on a non-dividend-paying stock is currently selling
for $250 . The stock price is $47, the strike price is $50, and t
Assignment 1
Note: Please staple your answer sheets together. Please show all working when
applicable.
1. A one-year call option on a stock with a strike price of $30 costs $3; a one-year put
option on the stock with a strike price of $30 costs $4. Suppos
Homework 13
Chapter 17
Questions: 2, 6, 11, 12, 13, 16, 18, 20
Problems: 2, 5, 6
Answers to Problems:
2. a. NAVopen-end, A = (165 x $25 + 50 x $45)/1,000 = $6.375
NAVclosed-end, B = (75 x $25 + 100 x $45)/1,000 = $6.375
b. NAVopen-end, A = (165 + 165) x $
Homework 9
Chapter 9
Problems: Ch9 (4,5,7,8)
Answer Keys to Problems
4. a. Bank USA is exposed to an appreciation of the dollar relative to the euro.
b. Bank USA converts the $10 million to euros as follows:
$10m/1.3 = 7,692,300
At the end of the year Ban
Homework 6
Chapters 10, 23 (Forwards and Futures)
Questions: Ch10 (1,2,4,6); Ch23 (2, 5)
Problems: Ch10(2, 4); Ch23 (3,4,5)
Answer Keys to Problems
Chapter 10
2. a. You are obligated to take delivery of a $100,000 face value 15year Treasury bond at a pric
Homework 5
Chapter 7
Questions: 5, 7, 10, 11, 12, 15, 16
Problems: 1 (a, d), 2 (a, d), 8, 9
Answer Keys to Problems
1. You will make a down payment of 20 percent of the purchase price, or you will make a down
payment of $20,000 (.20 x $100,000) at closing