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Investment Finance

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Business
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california univer
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Investment Finance
Market Stock Data
BEGINNING
OF PERIOD
END OF
PERIOD
a. Stock market index information
S&P 500 (stock) index level:
Nasdaq Composite (stock) index level:
2939.51
9036.50
3050.33
9909.17
b. Interest rate information:
Prime rate:
Federal funds rate:
Commercial paper rate (90 days):
Certificate of deposit rate (3-month):
Treasury bill rate (13 weeks):
Treasury bill rate (26 weeks):
3.25
0.04
0.98
0.50
0.10
0.12
3.25
0.08
0.18
0.50
0.15
0.17
c. Bond yield information:
Treasury long-term bond yield:
DJ Corporate bond yield:
Corporate (Master) bond yield:
High-yield corporate bond yield:
Tax-exempt (712-year) bond yield:
1.02
129.99
3161.43
17.50
400.50
1.21
132.83
3399.39
18.18
410.16
d. Use stock exchange quotations to record the stock price and
dividend of one stock from each
stock exchange in which you would like to invest.
New York Stock Exchange: Stock price:
Name of firm: Coca-Cola company KO. Dividend:
Nasdaq Market: Stock price:
Name of firm: NantHealth Inc. Dividend:
45.00
0.41
1.03
0.0
49.32
0.41
4.99
0.0
e. Use futures prices quotations to record the recent (“settle”)
price of the following futures (select futures with first
settlement date beyond the end of the school term):
Treasury bond futures:
S&P 500 index futures:
British pound futures:
178.42
2949.00
1.2454
178.08
3049.00
1.2520
f. Use an options quotations table to select a call option on a
firm whose stock price you expect to
increase (select the option with the first expiration month
beyond the end of the school term):
Name of firm: Kroger Company (KR)
Expiration month: 21/08/2020
Strike price: 36.00
Stock price:
Option premium:
31.52
4.48
32.82
3.18
g. Use an options quotations table to select a put option on a
firm where you expect the stock price to decrease (select the

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option with the first expiration month beyond the end of the
school term):
Name of firm: CNX Resources Corp (CNX)
Expiration month: 07/17/2020
Strike price: 8.00
Stock price:
Option premium:
3.95
4.05
8.96
0.96
h. Use a currency exchange rate table in The Wall Street
Journal to record exchange rates:
Exchange rate of the British pound (in $):
Exchange rate of the Japanese yen (in $):
Exchange rate of the Mexican peso (in $):
1.2468
0.0094
0.0421
1.2421
0.0093
0.0446
I. Use currency options data (if available) to select a call
option on a foreign currency that you expect will strengthen
against the dollar (select the option with the first expiration
month beyond the end of the school term):
Currency: NZD
Expiration month: 07/24/2020
Strike price: 0.6600
Currency’s existing value:
Option premium:
0.6133
0.0467
0.6415
0.0185
j. Use currency options data (if available) to select a put option
on a foreign currency that you expect will weaken against the
dollar (select the option with the first expiration month
beyond the end of the school term):
Currency: CAD
Expiration month: 07/24/2020
Strike price: 0.7000
Currency’s existing value:
Option premium:
0.7205
0.0205
0.7332
0.0332
Questions
1. Explaining changes in interest rates (from Chapter 2)
a. Compare the 13-week Treasury bill rate (which is a proxy for short-term interest rates) at
the end of the school term to the rate that existed at the beginning of the school term
At the beginning of the school term, the 13-week Treasury bill rate was 0.10, while it was 0.15 at
the end of the school term.
b. Recall that Chapter 2 offered reasons why interest rates change over time. Apply the
concepts in that chapter to explain why you think interest rates have changed over the school
term.
Some of the reasons why interest rates change over time include inflation, the amount of Federal
Reserve and the federal fund rate, interest rate risk, and the supply and demand during auction.

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Investment Finance Market Stock Data BEGINNING END OF OF PERIOD PERIOD a. Stock market index information S&P 500 (stock) index level: Nasdaq Composite (stock) index level: b. Interest rate information: Prime rate: Federal funds rate: Commercial paper rate (90 days): Certificate of deposit rate (3-month): Treasury bill rate (13 weeks): Treasury bill rate (26 weeks): c. Bond yield information: Treasury long-term bond yield: DJ Corporate bond yield: Corporate (Master) bond yield: High-yield corporate bond yield: Tax-exempt (7–12-year) bond yield: d. Use stock exchange quotations to record the stock price and dividend of one stock from each stock exchange in which you would like to invest. New York Stock Exchange: Stock price: Name of firm: Coca-Cola company KO. Dividend: Nasdaq Market: Stock price: Name of firm: NantHealth Inc. Dividend: e. Use futures prices quotations to record the recent (“settle”) price of the following futures (select futures with first settlement date beyond the end of the school term): Treasury bond futures: S&P 500 index futures: British pound futures: f. Use an options quotations table to select a call option on a firm whose stock price you expect to increase (select the option with the first expiration month beyond the end of the school term): Name of firm: Kroger Company (KR) Expiration month: 21/08/2020 Strike price: 36.00 Stock price: Option premium: g. Use an options quotations table to select a put option on a firm where you expect the stock ...
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Awesome! Perfect study aid.

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