High Quality, Fast Delivery, Plagiarism Free - Just in 3 Steps

## Upload Questions Details and Instructions:

Select Assignment Files

Assignment solution along with originality report.

Get assignment answer help by skilled & qualified tutors.

### Best Price Guarantee

Friendly pricing & refund policy.

# SBS MBA Futures & Options Finance Assignment Questions 2023

## SBS MBA Futures & Options Finance Assignment Questions and Answers

Assignment Detail:-

• Number of Words: 2500

Are you searching for SBS MBA Futures & Options Finance Assignment Answers Online? Casestudyhelp.com delivers Finance Assignment Help at an affordable price. We provide assignment help services with high-quality material. Our MBA assignment writers have experienced of the field. Hire the subject area experts for top-notch assistance.

Q1. Suppose that a trader sells a September European call option to buy a share for \$10 which costs \$1.

Now we are at expiration, under what circumstances will the seller of the option (i.e., the trader with the short position) make a profit?

Under what circumstances will the option be exercised?

Draw a diagram (by hand and insert a photograph) illustrating how the profit from a short position in the option depends on the stock price at maturity of the option.

Q2. Arbitrage opportunies. Suppose that:

The spot price of a non-dividend-paying stock is \$10 The 6-month forward price is \$12

The 6-month US\$ interest rate is 5% per annum Is there an arbitrage opportunity?

TIPS: present a table at time To (now) and T(in 6 months) to explain the arbitrage strategy and sum up all the cash flows to determine the profit of the arbitrage.

Q3. Compounding, present and future values

1. 2 years annual compounding at 5% of \$1000
2. 2 years monthly compounding at 5% of \$1000
3. Present value of \$1000 that will be received in 2 years with annual compounding at 4%
4. How much annual compounding is equivalent to a 3% continuous
5. How much continuous compounding is equivalent to a 4% semi-annual compounding

Q4. Explain why, due to the liquidity preference theory, different maturities should have different interest rates. Explain, using an example, short and medium term borrowing and lending.

Q5. Currently, the yield curve is inverted in the credit market. Explain, with professional/academic references, why this is the case. What does this mean for banks and how can this be linked to recent bank failures (Signature, SVB, etc.)?

TIPS: 300 words, use 3-4 references for this answer, no introduction or conclusion needed.

#### Get This Answer for Study Help

If you need study assistance with writing your questions and answers, our professional assignment writing service is here to help!

#### Content Removal Request

If you are the original writer or copyright-authorized owner of this article and no longer wish to have, your work published on casestudyhelp.com, then please Request for removal of this content.

Top