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Lubov Fominskaja [6]
3 years ago
8

A futures contract on a 30 day Eurodollar time deposit is currently selling at an IMM index of 95.75 percent. The IMM index on a

30 day Eurodollar time deposit for immediate delivery is 95.10 percent. What is the basis risk for the futures contract
Business
1 answer:
kolezko [41]3 years ago
5 0

Answer:

Basis risk for the future contract is 0.65%

Explanation:

Basis risk is the difference in spot price and future price of an hedged asset. It is the difference between the price price of an hedged asset and price of the asset serving as the hedge.

Basis risk = Futures price of contract − Spot price of hedged asset

Basis Risk = Future IMM index - Spot IMM index

Basis risk = 95.75% - 95.10%

Basis risk = 0.65%

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The ____ flow of information needed from the CSIRT to organizational and IT/InfoSec management is a critical communication requi
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Answer:

The answer to this question is Upward.

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3 years ago
The common stock of Zeta Group sells for $42 per share, has a rate of return of 12.2 percent, and a dividend growth rate of 1.8
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Answer:

The amount of the last annual dividend paid is <u>$4.3</u>.

Explanation:

Given:

The common stock of Zeta Group sells for $42 per share, has a rate of return of 12.2 percent, and a dividend growth rate of 1.8 percent annually.

Now, to find the amount of last annual dividend paid.

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Rate of dividend growth (g) = 1.8\%.

Now, to get the amount of last dividend paid we put formula:

p=\frac{l(1+g)}{r-g}

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42=\frac{l\times 1.018}{0.104}

<em>Multiplying both sides by 0.104 we get:</em>

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<em>Dividing both sides by 1.018 we get:</em>

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6 0
3 years ago
What are your opinons on doge coin?
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