ECON5007 Group Assignment 金融市场经济论文代写 Weight: 20% Length: 3000 words. Format: Upload your assignment work in pdf format (.pdf) from the “Assignments” tag on Canvas. Weight: 20% &nb...View details
经济练习题代写 Week 9 review questions 1.What is the role of an arbitrageur in the context of futures markets? 2.How does a futures contract differ in relation to
Week 9 review questions 经济练习题代写
1.What is the role of an arbitrageur in the context of futures markets?
2.How does a futures contract differ in relation to a forward contract?
3.Explain how Exchange for physicals (EFP) can be used to terminate a futures position.
4.What is the difference between ‘initial’ margin and ‘maintenance’ margin?
5.What investment objective might an investor seek to achieve through the implementation of a ‘straddle’ trade?
6.Explain how an arbitrage opportunity arises if F(t,T) < R(t,T).p(t)
7.Explain why the following relationship may be consistent with an absence of arbitrage opportunities: F(t,T)<= [R(t,T) + c(t,T) – y(t,T)].p(t)
8.How can a forward contract be revalued? Provide an example.
9.Explain the concept of covered interest parity and demonstrate the relationship with an example using a specific spot rate and interest rates to derive the forward rate.
10.What is meant by a ‘perfect’ hedging strategy?
11.Provide at least two reasons why a perfect hedge may be difficult to implement.
Week 10 review questions 经济练习题代写
1.What is the difference between a ‘covered’ versus a ‘naked’ option position?
2.Draw a net payoff diagram for a long call option.
3.On the diagram you drew in Q2, assume the following information: X=5, S=10, c=2. Show the respective information including the payoff on the diagram.
4.Draw a net payoff diagram for a short put option.
5.On the diagram you drew in Q4, assume the following information: X=10, S=7, p=1. Show the respective information on the diagram including the payoff.
6.Can an option with zero intrinsic value have a positive price? Explain.
7.What are the major differences between an equity warrant and an option contract?
8.Outline the steps in deriving/proving the ‘bounds’ on option prices relative to their underlying asset prices.
9.Why is a call option never worth more than the value of its underlying asset?
10.Define the put call parity relationship and prove an arbitrage opportunity exists if the equality of the relationship is violated.
11.Explain the payoff in different states of the world to bond holders under the Modigliani-Miller theorem.
12.Explain the obligation on the writer of a put option over a futures contract upon exercise.
13.Check the calculation of the net effective interest rate in the table provided on p502 of Bailey when the market rate of interest is 7%.