[PDF] Top 20 CFA 2018 Derivatives Qest bank R40 Pricing and Valuation of Forward Commitments Q Bank

... GBP forward at a forward rate of ...£0.7600, and the annually compounded risk-free rates are ...pound and 3.00% for the USD. Assume at Time t the forward contract has one month ... Lihat dokumen lengkap

... 26. PSO and NRL stocks are currently priced at PKR 250 per share. Over the next year, PSO stock is expected to pay dividends whereas NRL stock is not expected to pay dividends. There are no carrying costs ... Lihat dokumen lengkap

... 5. A non-dividend paying stock is trading at €100. A European call option on this stock has two years to mature. The periodically compounded risk-free interest rate is 3%, the exercise price of the option is €100 ... Lihat dokumen lengkap

... for pricing individual securities and identifying arbitrage opportunities in the ...process of stripping whereby individual cash flows of a government bond are traded as zero- coupon ... Lihat dokumen lengkap

... price of each depository receipt (and returns) will be affected by factors that affect the price of the underlying shares, such as company fundamentals, market conditions, analysts’ recommendations, ... Lihat dokumen lengkap

... 27. A market participant has a view regarding the potential movement of a stock. He sells a customized over-the-counter put option on the stock when the stock is trading at $46. The put has an exercise price ... Lihat dokumen lengkap

... A and Company B, each have bonds outstanding with similar coupons and maturity ...B+, and B+ by Moody‘s, S&P, and Fitch, ...explanation of the price difference? ... Lihat dokumen lengkap

... owner of a textile company in ...Pakistan and will be paid in Pakistani Rupees (PKR) in ninety ...possibility of the PKR depreciating more than expected against the UK Pounds ...seller of such ... Lihat dokumen lengkap

... 7. B is correct. Management compensation does not directly impact the government's interest as a stakeholder. Being a tax collector, the government is interested in the company's profits whereas as in order to safeguard ... Lihat dokumen lengkap

... 42. C is correct. QE is an unconventional approach to monetary policy and is operationally similar to open market purchase operations, but conducted on a much larger scale. The idea is that additional reserves ... Lihat dokumen lengkap

... 9. Jane Norah is an analyst for a midcap growth fund. The fund earns a quarterly return of 4.5 percent relative to an estimated return of 6.0 percent. If Norah wishes to test whether the actual results are ... Lihat dokumen lengkap

... beginning of the year a company purchased a fixed asset for $2,000,000 with no expected residual ...rate of 10% per ...year and the tax rate is 30%. Which of the following statements ... Lihat dokumen lengkap

... 28. B is correct. In an inefficient market, investors might be able to earn superior risk adjusted returns since opportunities for it exist in the market e.g. due to mispricing. However, in an efficient market a passive ... Lihat dokumen lengkap

... investment of 50 has annual after-tax cash flows of 20 for four ...15 and the annual after-tax cash flows by ...intercept of the NPV profile of the reengineered project shifts: ... Lihat dokumen lengkap

... data of security. This includes the price and volume data of ...type and features of the security is not relevant for technical ...analysis and it does not have any application ... Lihat dokumen lengkap

... amount of $300,000 in stocks and fixed income instruments at the start of the ...60% of the portfolio and generated year-end return of 35%, whereas the fixed income instruments ... Lihat dokumen lengkap

... 5. B is correct. Measuring willingness to take risk (risk tolerance, risk aversion) is an exercise in applied psychology. Instruments attempting to measure risk attitudes exist, but they are clearly less objective than ... Lihat dokumen lengkap

... menu of quantity-based pricing options designed to induce customers to self-select based on how highly they value the ...example of third-degree price discrimination where customers are segregated by ... Lihat dokumen lengkap

... 61. Maxtax Inc. has issued semiannual $1,000 par value Floating Rate Note with 4 years to maturity, the reference rate is 180-day LIBOR and the quoted margin is 75 basis points. 180- day LIBOR is currently quoted ... Lihat dokumen lengkap

... capital of $150 million, carried interest of 20% and a hurdle rate of ...A of $50 million and in company B of $50 million at the beginning of year ...A and ... Lihat dokumen lengkap