TEST BANKS & SOLUTION MANUALS
LIST OF PRODUCTS
GUIDE
CONTACT US
Test Bank
Login / Register
0 items / $0.00
Menu
Test Bank testbank logo2
0 items / $0.00
  • Home
  • Health Professions
    • Nursing
    • Pharmacology/Surgical
    • Surgical Technology
    • Health and Disease
    • Blood Banking
    • Medical
    • Medicine
    • Emergency Care
    • Nutritional Care
    • Dental Materials
    • Cancer
    • Drug
  • Business & Management
    • Accounting
    • Marketing
    • Management
    • Statistics
    • Auditing
    • Business
    • Business Statistics
    • Banking
    • Financial
    • Financial Accounting
    • Personal Finance
    • Investment
    • Taxation of Business
  • Exams
    • Physical/Examination
  • Science & Technology
    • Biology
    • Chemistry
    • Biochemistry
    • Basic Chemistry
    • Environmental Science
    • Geography
    • Math
    • Psychology
    • Anatomy & Physiology
    • Astronomy
    • Information Technology
    • Microbiology/Biology
    • Neuropsychology
    • Pediatric Primary
    • Research Method
  • Engineering
    • Information Technology
    • Computing Technology
    • Data Analysis
    • Database
    • Web Design
    • Web Development
  • Humanities
    • Communication
    • Economics
    • Education
    • History
    • Sociology
    • Human Development
    • Human Physiology
    • Human Sexuality
    • Politics
    • Criminology
    • Criminal Justic
    • Art
    • Leadership
    • Learning
    • Legal Environment
    • Lifespan
    • Relationship
  • Blog
-29%
Introduction To Derivative Securities By Robert A. Jarrow – Test Bank
Click to enlarge
Home » Shop » Introduction To Derivative Securities By Robert A. Jarrow – Test Bank
The West In The World AP Edition By Dennis Sherman – Test Bank
The West In The World AP Edition By Dennis Sherman – Test Bank $35.00 Original price was: $35.00.$25.00Current price is: $25.00.
Back to products
A Concise Introduction To Logic 13th Edition By Patrick J. Hurley – Test Bank
A Concise Introduction To Logic 13th Edition By Patrick J. Hurley – Test Bank $35.00 Original price was: $35.00.$25.00Current price is: $25.00.

Introduction To Derivative Securities By Robert A. Jarrow – Test Bank

$35.00 Original price was: $35.00.$25.00Current price is: $25.00.

This is not a Textbook. Please check the free sample before buying.

Format: Downloadable ZIP Fille

Resource Type: Test bank

Duration: Unlimited downloads

Delivery: Instant Download

Add to wishlist
Category: Financial Accounting
Share:
  • Description
  • Reviews (0)
  • Instant Delivery By Mail
Description

Introduction to Derivative Securities By Robert A. Jarrow – Test Bank

CHAPTER 11: The Cost-of-Carry Model

MULTIPLE CHOICE

1. Suppose that today’s price of gold in the spot market is $1,510 per ounce. The price of a zero-coupon bond maturing in six months is $0.98. Then the six-month forward price for gold is:
a. $1,515.08
b. $1,531.61
c. $1,540.82
d. $1,550.69
e. None of these answers are correct.

ANS: C DIF: Easy REF: 11.2 TOP: A Cost-of-Carry Example
MSC: Applied

2. The current price of BUG stock is $51. The continuously compounded interest rate is 5.25 percent per year. What is the five-month forward price for BUG stock?
a. $51.22
b. $51.89
c. $66.31
d. $52.13
e. None of these answers are correct.

ANS: D DIF: Easy REF: 11.2 TOP: A Cost-of-Carry Example
MSC: Applied

3. The current price of YBM stock is $103. The seven-month forward price for YBM stock is $106. If the forward price is determined according to a simple cost-of-carry model, then the continu-ously compounded interest rate is:
a. 3.23 percent per year
b. 2.87 percent per year
c. 4.92 percent per year
d. 5.25 percent per year
e. None of these answers are correct.

ANS: C DIF: Moderate REF: 11.2 TOP: A Cost-of-Carry Example
MSC: Applied

Today’s spot price of gold is $1,600 per ounce. The continuously compounded interest rate is 5 percent per year. The quoted six-month forward price for gold is $1,650.

4. The arbitrage-free six-month forward price for gold is:
a. $1,616.16
b. $1,630.00
c. $1,640.50
d. $1,648.03
e. None of these answers are correct.

ANS: C DIF: Easy REF: 11.2 TOP: A Cost-of-Carry Example
MSC: Applied

5. The arbitrage profit that you can make today by trading one forward contract and oth-er securities is:
a. $5.08
b. $9.26
c. $8.07
d. $9.38
e. None of these answers are correct.

ANS: B DIF: Moderate REF: 11.2 TOP: A Cost-of-Carry Example
MSC: Applied

6. The assumptions underlying the cost-of-carry model do NOT include the following:
a. no market frictions
b. no credit risk
c. competitive and well-functioning markets
d. constant interest rates
e. no arbitrage opportunities

ANS: D DIF: Easy REF: 11.3 TOP: The Assumptions
MSC: Factual

7. If the assumption of “no market frictions” holds, then which of the following is IN-CORRECT?
a. no transactions costs
b. no margin requirements
c. no short sales restrictions
d. no taxes
e. no credit risk

ANS: E DIF: Easy REF: 11.3 TOP: The Assumptions
MSC: Factual

8. Suppose that trades now require a transactions cost of $3 per ounce whenever spot gold is traded, a $2 per ounce one-time fee for trading forward contracts, but no charges for trading bonds. If you have to pay transactions costs, the arbitrage profit that you can make today by trading one forward contract and other securities is:
a. 0
b. $4.26
c. $2.53
d. $7.53
e. None of these answers are correct.

ANS: B DIF: Moderate REF: 11.4 TOP: The Cost-of-Carry Model
MSC: Applied

9. Consider two portfolios, A and B. We consider their values today and on some future date, time T. There are no cash flows on intermediate dates. If arbitrage opportunities are ruled out, then which of the following statements is INCORRECT?
a. If the portfolios A and B always have the same value at time T, then they must have the same value today.
b. If the portfolios A and B have the same value today, then they must always have the same value at time T.
c. If we subtract portfolio A from B, and the resulting portfolio always has a zero value at time T, then it must have a zero value today.
d. If we subtract portfolio A from B, and the resulting portfolio always has a positive value at time T, then it has a positive value today.
e. If we subtract portfolio A from B, and the resulting portfolio has a zero value today, then it need not have a zero value at time T.

ANS: B DIF: Difficult REF: 11.4 TOP: The Cost-of-Carry Model
MSC: Conceptual

10. Suppose you bought a forward on January 1 that matures a year later. The forward price was $214 at that time and the simple interest rate was 7 percent per year. Six months have passed, and the spot price is now $190. The value of your forward contract today is:
a. –$16.76
b. –$3.56
c. 0
d. $16.76
e. None of these answers are correct.

ANS: A DIF: Moderate REF: 11.5
TOP: Valuing a Forward Contract at Intermediate Dates MSC: Applied

Reviews (0)

Reviews

There are no reviews yet.

Be the first to review “Introduction To Derivative Securities By Robert A. Jarrow – Test Bank” Cancel reply

Your email address will not be published. Required fields are marked *

Instant Delivery By Mail

Related products

-29%
Financial And Managerial Accounting 18th Edition By Jan Williams – Test Bank
Quick view
Add to wishlist
Add to cart

Financial And Managerial Accounting 18th Edition By Jan Williams – Test Bank

$35.00 Original price was: $35.00.$25.00Current price is: $25.00.
-43%
Financial Accounting The Impact On Decision Makers 10th Edition By Gary A Porter – Test Bank
Quick view
Add to wishlist
Add to cart

Financial Accounting The Impact On Decision Makers 10th Edition By Gary A Porter – Test Bank

$35.00 Original price was: $35.00.$20.00Current price is: $20.00.
-29%
Financial And Managerial Accounting For MBAs 4th Edition By Coleman Easton – Test Bank
Quick view
Add to wishlist
Add to cart

Financial And Managerial Accounting For MBAs 4th Edition By Coleman Easton – Test Bank

$35.00 Original price was: $35.00.$25.00Current price is: $25.00.
-43%
Advanced Financial Accounting 8th Edition By Baker – Test Bank
Quick view
Add to wishlist
Add to cart

Advanced Financial Accounting 8th Edition By Baker – Test Bank

$35.00 Original price was: $35.00.$20.00Current price is: $20.00.
-43%
Applying IFRS Standards 4th Edition By Ruth Picker – Test Bank 1
Quick view
Add to wishlist
Add to cart

Australian-Financial-Accounting-7th-Edition_23to35

$35.00 Original price was: $35.00.$20.00Current price is: $20.00.
-43%
Advanced Financial Accounting Canadian 7th Edition By Beechy – Test Bank
Quick view
Add to wishlist
Add to cart

Advanced Financial Accounting Canadian 7th Edition By Beechy – Test Bank

$35.00 Original price was: $35.00.$20.00Current price is: $20.00.
-43%
Financial Accounting Tools For Business Decision Making 6th Canadian Edition By Kimmel – Test Bank
Quick view
Add to wishlist
Add to cart

Financial Accounting Tools For Business Decision Making 6th Canadian Edition By Kimmel – Test Bank

$35.00 Original price was: $35.00.$20.00Current price is: $20.00.
-43%
Financial Accounting 4th Edition By David Spiceland – Test Bank
Quick view
Add to wishlist
Add to cart

Financial Accounting 4th Edition By David Spiceland – Test Bank

$35.00 Original price was: $35.00.$20.00Current price is: $20.00.
Test Bank
  • 3277 S WHITE RD SAN JOSE, CA 95148
  • Phone: (064) 332-1233
  • admin@testbank.ltd
MAIN
  • Home
  • Blog
  • Guide
  • FAQs
  • Contact us
  • Account
Categories
  • Test Banks & Solutions
  • List of Products
  • Nursing Test Bank
  • Accounting Test Bank
  • Exams Test Bank
  • Surgical Test Bank
NEED HELP?
  • Privacy Policy
  • Refund & Returns
  • Terms And Conditions
  • Shipping Policy
  • Billing Term Conditions
  • Submit your Request
NEW REQUEST

We have the biggest collection of authentic Test Banks with many more being uploaded every day so if you can’t find your desired Test Bank or Solution Manual then please Submit Request and we will send it to your inbox.

Test Bank 2023 All Right Reserved
payments
  • Home
  • Health Professions
    • Nursing
    • Pharmacology/Surgical
    • Surgical Technology
    • Health and Disease
    • Blood Banking
    • Medical
    • Medicine
    • Emergency Care
    • Nutritional Care
    • Dental Materials
    • Cancer
    • Drug
  • Business & Management
    • Accounting
    • Marketing
    • Management
    • Statistics
    • Auditing
    • Business
    • Business Statistics
    • Banking
    • Financial
    • Financial Accounting
    • Personal Finance
    • Investment
    • Taxation of Business
  • Exams
    • Physical/Examination
  • Science & Technology
    • Biology
    • Chemistry
    • Biochemistry
    • Basic Chemistry
    • Environmental Science
    • Geography
    • Math
    • Psychology
    • Anatomy & Physiology
    • Astronomy
    • Information Technology
    • Microbiology/Biology
    • Neuropsychology
    • Pediatric Primary
    • Research Method
  • Engineering
    • Information Technology
    • Computing Technology
    • Data Analysis
    • Database
    • Web Design
    • Web Development
  • Humanities
    • Communication
    • Economics
    • Education
    • History
    • Sociology
    • Human Development
    • Human Physiology
    • Human Sexuality
    • Politics
    • Criminology
    • Criminal Justic
    • Art
    • Leadership
    • Learning
    • Legal Environment
    • Lifespan
    • Relationship
  • Blog
  • Wishlist
  • Login / Register
Shopping cart
close

Sign in

close

Lost your password?

No account yet?

Create an Account
Start typing to see products you are looking for.
Shop
Wishlist
0 items Cart
My account