FIN5130
Week 1 Assignment
Chapter 3 Problems
3.5
Needham Pharmaceuticals has a profit margin of 3%, and an equity multiplier
of 2.0, It sales are $100 million and it has total assets of $50 million. What is ROE?
Profit Margins =
3%
Equity Multiplier =
2.0
FIN5130
Chapter 10 Problems
10.1
A project has an initial cost of $40,000, expected net cash inflows
of $9,000 per year for 7 years, and a cost of capital of 11%.
What is the project's NPV (Hint: Begin by constructing a
timeline)
(NPV)
Excel :
CF0 =
-40,0
FIN5130
Week 3 Assignment
Chapter 7 Problems
7.1
Thress Industries just paid a dividend of $1.50 a share (i.e. D0=$1.50).
The dividend is expected to grow 5% a year for the next 3 years and
then 10% a year thereafter. What is the expected dividend per sha
FIN5130
Week 2 Assignment
Chapter 5 Problems
5.1
Jackson Corporation's bonds have 12 years reamining to maturity. Interest is paid annually
the bonds have $1,000 par value, and the coupon interest rates is 8%. The bonds have a
yield to maturity of 9%. Wha
FIN5130
Chapter 17 Problems
17.5
Suppose that the exchange rate is 0.60 dollars per Swiss franc. If the franc
appreciates 10% against the dollar, how many francs would a dollar buy tomorrow?
(Currency Appreciation)
1.5152 SFr.
Swiss Franc/USD = $0.60
Swis
Investissements dans le secteur de la logistique
- Evolution rcente et perspectives davenir Introduction :
Le dploiement de la stratgie nationale logistique lance en 2010 constitue une relle
opportunit pour le dveloppement des investissements dans le sect
Data Case
You have just been hired by Dell Computers in their capital budgeting division. Your first
assignment is to determine the free cash flows and NPV of a proposed new type of tablet
computer similar in size to an I Pad but with the operating power
CELISTICS fiche descriptive :
CELISTICS Group est compos de trois socits: CELISTICS, Movilway et Sure
Destiny. Le Groupe a dbut ses activits Madrid, en Espagne, au milieu de 2008, et a
finalement t cr en Amrique latine avec des oprations dans 17 pays et c
Hamza Oulahrir
Email : [email protected]
Tlphone : 0642878823
N le 11/08/1991 Nationalit Marocaine
Formation:
Nova Southeastern University (NSU), School of Business, USA
Master of business administration concentration
+Supply chain management
Janv
Cas de donnes
Vous venez d'tre embauch par Dell Computers dans leur division budgtaire en
capital. Votre premire tche consiste dterminer les flux de trsorerie disponibles et les
VAN d'un nouveau type de tablette de type similaire celui d'un I Pad mais ave
Question 1
1 out of 1 points
A company enters into a long futures contract to buy 200 ounces of
gold for $1,270 per ounce. The initial margin is $4,000 and the
maintenance margin is $1,000. If the gold futures price drops, there
can be a margin call. To
Question 1
1 out of 1 points
Which is a right to sell a stock at a strike price only on a maturity date?
Selected
Answer:
European put
option
Answers:
European call
option
American call
option
European put
option
American put
option
Question 2
1 out of 1
Question 1
1 out of 1 points
On July 1, an investor holds 50,000 shares of a certain stock. The
market price is $34 per share. The investor is interested in hedging
against movements in the market over the next month and decides to
use the September Mini
Question 1
0 out of 1 points
A long forward contract on a non-dividend-paying stock was entered
into some time ago. It currently has 11 months to maturity. The riskfree rate with continuous compounding is 6.2% per annum, the stock
price is $35.51 and the
Question 1
0 out of 1 points
American call options on non-dividend paying stocks can be priced using BlackScholes option formula.
Selected
Answer:
Answers:
Response
Feedback:
Fals
e
True
False
When stocks don't pay dividend, nobody will early
exercise Am
A bank wants to lock in the 3-month interest rate starting between
6/20/2017 and 9/20/2017. Currently, 6/2017 Eurodollar futures price is 97.14
and 9/2017 Eurodollar futures price is 97.55. What is the lock in 3-month
interest rate between 6/2017 and 9/2
Question 1
1 out of 1 points
A portfolio manager sells Treasury bonds and buys corporate bonds
because the spread between corporate- and Treasury-bond yields is
higher than its historical average. This is an example of _ swap.
Selected
Answer:
Answers:
a
Question 1
0 out of 1 points
Futures price is the value of the futures contract.
Selected
Answer:
Answers:
Tru
e
True
Fals
e
Question 2
0 out of 1 points
Forward price is the value of the forward contract.
Selected
Answer:
Answers:
Tru
e
True
Fals
e
Ques
Question 1
1 out of 1 points
A call option expiring in 2 months has a market price of $10.75. The current stock
price is $70, the strike price is $60, and the risk-free rate is 4% per annum.
Calculate the implied volatility.
Selected
Answer:
30
%
Answers
Calculate the present value of $100 in 9 years using 9.8% interest rate with continuous
compounding.
Selected
Answer:
43.11
Correct
Answer:
41.40
1%
Response
Feedback:
Chapte
r4
Question 2
0 out of 1 points
A long forward contract on a non-dividend-payin
Question 1
1 out of 1 points
Suppose you are positive that the XYZ stock price will not change much in the near
future. Which action should you take?
Selected
Answer:
Buy one low strike price call + Buy one high strike price
call + Short two middle strik
Question 1
1 out of 1 points
Suppose you are positive that the XYZ stock price will not change much in the near
future. Which action should you take?
Selected
Answer:
Buy one low strike price call + Buy one high strike price
call + Short two middle strik
Question 1
0 out of 1 points
_ is the rate of change of the derivative price with respect to the volatility.
Selected
Answer:
Gam
ma
Answers:
Delta
Gam
ma
Vega
Theta
Question 2
1 out of 1 points
_ is a call option issued by a company on its own stock giv
Question 1
1 out of 1 points
ETF options are American-style.
Selected
Answer:
Answers:
Tru
e
Tru
e
False
Question 2
1 out of 1 points
_ is the rate of change of the derivative price with respect to the
underlying asset price.
Selected
Answer:
Delta
Answe
Question 1
1 out of 1 points
Which is a right to sell a stock at a strike price on or before a maturity date?
Selected
Answer:
American put
option
Answers:
European call
option
American call
option
European put
option
American put
option
Question 2
0 out