Finc 101 - Study guides, Class notes & Summaries

FINC 5370 (Derivatives Risk Parent) – Quiz 2 Chapter 5-8 with Answers – 100 out of 100 Points Download the File for Answers Questions 1. What is the difference between the forward price and the value of a forward contract? 2. The spot price of oil is $80 per barrel and the cost of storing a barrel of oil for one year is $3, payable at the end of the year. The risk-free interest rate is 5% per annum, continuously compounded. What is an upper bound for the one-year futures price of o...

Principle of Finance Milestone 2 Sophia Course Answer 1 You would like to have $8,000 in an account after four years' time. If the account earns 4% compounded interest yearly, how much would you have to deposit today? · $7,249 · $6,838 · $7,692 · $6,897 CONCEPT Present Value, Single Cash Flows 2 Select the true statement about interest rate risk. · It stems from the fact that bond prices and market interest rates are inversely correlated. · It is the risk that a bond's coupon payment w...