## Solution Library

#### Price of a One Year Forward Contract on Stock MCQ

Question XYZ stock is priced at \$100. The continuously compounded dividend yield on the stock is 3%.  The continuously compounded interest rate is 5%.  Which is closest to the price of a 12-month forward contract on XYZ stock? (a)        \$99 (b) & ... Read More

 Price: Original Price: \$2.00 Now at: \$1.00

#### Price of a One year Forward Contract on Stock MCQ

Question XYZ is a stock currently priced at \$100.  It is anticipated that XYZ will pay a special dividend of \$5.25 in 1 year.  Assume further that the annual effective interest rate is 5% (i.e., \$100 loaned today will return \$105 one year from now).  What is closest to the price of a ... Read More

 Price: Original Price: \$2.00 Now at: \$1.00

#### Graph PAYOFF function of Stock and to find Common Derivative

Question XYZ stock is currently trading at \$100.  The one-year effective interest rate is 5% (\$1 lent today yields \$1.05 one year from now).  A one year put with strike price \$105 is priced at \$5. Suppose you buy one put for \$5, buy one share for \$100, and borrow \$100. Graph the PAYOFF ... Read More

 Price: Original Price: \$5.00 Now at: \$3.00

#### Calculation of Forward Price of a Stock that Pays no Dividend

Question Consider a stock that pays no dividend trading at \$100.  Suppose one-year call options with strike prices of \$95, \$100, \$105, and \$110 can be bought for a premiums of \$16.41, \$12, \$9, and \$7.24 respectively.  Suppose the annual effective interest rate is 5% (i.e., a \$100 bond pay ... Read More

 Price: Original Price: \$7.00 Now at: \$4.00

#### Objectives When Formulating a Risk Management Strategy

Question Suppose you are advising a gold mining firm on risk management strategy.  It has a mine capable of producing ten ounces of gold per year.  This year, the firm plans to produce 10 ounces.  The firm’s cost of production in \$1200 per ounce, which it is committed to paying ... Read More

 Price: Original Price: \$5.00 Now at: \$3.00

#### Detailed and Analytical Valuation ofÂ  a Stock

Question Provide a detailed and analytical valuation of a selected stock. Also provide a statement of its portfolio’s relative risk and vulnerability to economic trends as well as the measures of profitability of the individual assets in its portfolio. Summary: This question belongs to finan ... Read More

 Price: Original Price: \$17.00 Now at: \$11.00

#### Reasons for Switching from One Convenience Product to Another

Question Make a list of all the convenience products you buy in a week (any week is okay). Does the list change from week to week based on need or your budget? What would it take to make you switch from one product to another? Summary This question belongs to finance and discusses about budget on ... Read More

 Price: Original Price: \$7.00 Now at: \$4.00

#### Business Strategy of Aspen Technology Inc

Question Aspen Technology, Inc:  Currency Hedging Review This case is intended to analyze how a small, young firm's business strategy creates currency exposure and a need to manage this exposure. It is designed to explore the conflicting rationales for risk management and the measurement of e ... Read More

 Price: Original Price: \$28.00 Now at: \$19.00

#### City of Bradford Airport Fraud Examination of Land Acquisition

Question The City of Bradford has undertaken the construction of a new airport. The airport is projected to be completed in 2018. When completed, the airport will be the fifth largest in the world and will serve the entire greater Dallas Metroplex. The total cost of the airport is budgeted to be in ... Read More

 Price: Original Price: \$15.00 Now at: \$10.00

#### Financial Performance Report of Amec Foster Wheeler Company

Question Select a target company and a benchmark company that are listed on the UK LSE ALL SHARE INDEX. Prepare a report which includes the following: Introduction Performance Ratio analysis Cash flows Non-financial performance indicators Conclusion and recommendations   Summary: ... Read More

 Price: Original Price: \$39.00 Now at: \$28.00

#### Calculation of Â Theoretical Ex-rights Price per Share of a Company

Question Nike Ltd has issued share capital 4 million ordinary shares, with a par value of \$1 each share. The board of the company has accepted the proposal for a new venture and therefore needs to raise \$2 million. The finance director has suggested that this finance be raised by way of a 1 for 4 ... Read More