Study Guides (247,934)
Canada (121,177)
Administration (1,201)
ADM4351 (2)
All (2)
Final

Final_4351_Fall 2010.doc

12 Pages
77 Views
Unlock Document

Department
Administration
Course
ADM4351
Professor
All Professors
Semester
Winter

Description
ExamADM 4351 Options and FuturesDecember 10 2010ProfessorAnna DodonovaDuration3 hoursINSTRUCTIONS1Books and notes are not permitted2Calculators are permitted3Answer in the space provided NAMESTUDENTStatement of Academic IntegrityThe School of Management does not condone academic fraud an act by a student that may result in a false academic evaluation of that student or of another student Without limiting the generality of this definition academic fraud occurs when a student commits any of the following offences plagiarism or cheating of any kinduse of books notes mathematical tables dictionaries or other study aid unless an explicit written note to the contrary appears on the exam to have in hisher possession cameras radios radios with head sets tape recorders pagers cell phones or any other communication device which has not been previously authorized in writing Statement to be signed by the studentI have read the text on academic integrity and I pledge not to have committed or attempted to commit academic fraud in this examinationSignedNote an examination copy or booklet without that signed statement will not be graded and will receive a final exam grade of zero 12 parts 34 points totalPart 1 Multiple choice 1 point each truefalse 05 points each and short questions 1 point each only the final answers will be graded 14 points total1 Selling a call option gives you a payoff of a max XST 0b max STX 0c min XST 0d min STX 0e max XST2 Suppose that you enter into a short futures contract to sell July silver for 1020 per ounce on the New York Commodity Exchange The size of the contract is 5000 ounces The initial margin is 4000 and the maintenance margin is 3000 From the list below what is the minimum change in the futures price that will lead to a margin calla There will be a margin call when the price of silver decreases by 021b There will be a margin call when the price of silver decreases by 026c There will be a margin call when the price of silver increases by 021d There will be a margin call when the price of silver increases by 026e There will be a margin call when the price of silver decreases by 0343 On July 1 2010 a Japanese company enters into a forward contract to buy 1 million on January 1 2011On September 1 2010 it enters into a forward contract to sell 1 million on January 1 2011 Describe the profit or loss the company will make in yen as a function of the forward exchange rates on July 1 2010 and September 1 2010 F1 and F2 are forward exchange rates for the contracts entered into July 1 2010 and September 1 2010 and S is the spot rate on January 1 2011 All exchange rates are measured as yen per dollar a The total payoff is F1SF2S million yenb The total payoff is F1F2 million dollarsc The total payoff is F1F2 million yend The total payoff is SF1 SF2 million dollarse The total payoff is SF1F2S million yen2
More Less

Related notes for ADM4351

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit