BUS 419 Midterm: BUS 419 Midterm 2004
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Rules for submitting midterm exam: answers to questions are to be typed, single spaced, of length. 1 page each for all questions, 8"x11" standard paper, with 1" margin and type point not less than 12. (this assignment is typed in 12 point. ) For questions with multiple parts, e. g. , a) and b), answer all parts. Assignment is due at the start of class one week from the date it is handed out (week 9). Do any 3 of 4 questions; be sure to answer all parts of the question. (total length 3 pages: a) explain the arbitrage underlying the covered interest parity theorem. What institutional characteristics of bankers" acceptances, commercial paper and treasury bills would make it difficult for. Be as complete as possible in explaining your answer: assume that you are convinced that the spread between the implied carry return in gold futures will widen relative to the return implied in silver futures.