Valuation of Futures Contracts - Assignment Example

Only on StudentShare

Extract of sample
Valuation of Futures Contracts

The future looks gloomy for this stock Factors affecting perfomance of cooprate bond Prevailing interest rates Idealy corprate bonds offer better yield prospects than government bonds but that’s because of the risk involved. This is happens so as to entice the investors to turn their attention away from the treaeury bonds and securities. Since most often than not, the performance of corprate bonds are pegged against that of treasury bonds. The prices at which the later are quoted really maters, the amount of yield they produce also matters a lot. When the yield of a bonds future is less than that of prevailing treasury bonds, such a bond is considered to be under performing. When the Government issues bonds at better prices than that of the corporate bonds the demand shifts to the government bonds thus the laws of demand and supply come into play hence forcing the corporate bond’s price to dip. The opposite happens when the government bonds are not that attractive which is very rare. Overal perception of the investor Whenever global news headlines are positive and encouraging, investors tend to be more open minded and open to opportunities across the globe. ...Show more

Summary

Finance and accounting Name: Institution: Day one Day two Day Three Day Four Settlement price (SE)$ 1.3140 1.3126 1.3133 1.3040 Account balance (AS) $ 1700 1698.19 1697.28 1710.30 Net asset value (NAV)$ (SE x AS) 2233.8 2229.04 2230.23 2213.25 Account Balance on day two equals to NAV of Day one divide by settlement price for day two The settlement price seems to be on a constant downward trend…
Author : gerholdjoey
Save Your Time for More Important Things
Let us write a custom assignment on your topic
"Valuation of Futures Contracts"
with a personal 20% discount.
Find out more

Related Essays

Valuation
Coca-cola Corporation has introduced more than 500 brands and some of the renowned brands are Coke, Diet Coke, Caffeine Free Coca-Cola and Coca-Cola Zero. The company has its presence in more than 200 countries of the world and is more renowned as Coke. More than 1.7 billion people are served every day with the products of Coca-Cola.
7 pages (1750 words) Research Paper
Discuess the statement about the pricing, valuation and sensitivities of Credit default Swaps Spreads by presenting a critical r
In this report, research work that has been done by various authors is taken into consideration. It focuses on three key areas: One is the determination of the price of a single name CDS security and demonstration of how the price of a CDS is obtained for a listed company using a specific pricing model.
9 pages (2250 words) Essay
Futures contracts in risk management companies can use trading on a US exchange
The commodity items that are used in these transactions are intangible. These commodities include stocks, indexes and treasury bonds. A successful futures trade is referred to as a Cognito while an inverted futures trade is called a backwardation. Table of Contents Executive Summary 2 Introduction 4 Literature Review 5 Commodity futures charts 7 Crude Oil & Natural Gas 7 Refined Products 8 Emissions 8 Gold 8 Silver 8 Futures Contract Case study 8 Natural rubber futures trading in Thailand 8 Conclusion 11 References 12 Introduction A futures contract is an accord between two parties who have agreed to buy or sell a particular commodity of an agreed quantity.
8 pages (2000 words) Essay
Come up with topic and I will discuss it with the professor then u can start writing
Corporation’s shareholders are taxed on dividends allocated by the corporation. Some corporations such as mutual funds are not taxed at the corporate level; in fact their shareholders are taxed on the corporation’s income. Domestic corporations are taxed at the state and federal level on their international income.
6 pages (1500 words) Essay
financial services
The underlying factors of the market that determines the value of derivative contracts may be currency conversion rates, interest rates, equity prices, commodity prices, etc. The derivative contracts may take the form of options, swaps, futures, forwards, etc.
5 pages (1250 words) Essay
Mercury Athletics Footwear: Corporate Valuation
Free cash flow analysis is the most suitable method of determining a possible acquisition. The analysis and calculations regarding the present value of Mercury Athletic Footwear are shown. I have attached the workings in an excel document. Value of Mercury Athletic Footwear 2007 2008 2009 2010 2011 1 2 3 4 5 Revenue 479,329.00 489,028.00 532,137.00 570,319.00 597,717.00 Less: Cost of Revenue 423,837.00 427,333.00 465,110.00 498,535.00 522,522.00 Less: SA&A 8,487.00 8,659.00 9,422.00 10,098.00 10,583.00 Operating Earnings 47,005.00 53,036.00 57,605.00 61,686.00 64,612.00 Add Depreciation & Amortization 9,587.00 9,781.00 10,643.00 11,406.00 11,954.00 EBIT 56,592.00 62,817.00 68,248.00 73,092.0
6 pages (1500 words) Essay
Valuation of Securities
Retirees are interested in receiving a stable income that keeps pace with inflation. An investment that facilitates the receipt of an annual return is best since the investor will not have to consider selling shares or bonds in order to pay bills. If I am at retirement age and I have saved ?
9 pages (2250 words) Essay
Valuation Financial statement analysis
It was incorporated in the United Kingdom and trades its shares in the London Stock Exchange (LSE). The company dates back to 1885, when William Lever together with his brother established a soap manufacturing company and named it Lever Brothers. They started by manufacturing Sunlight, the first packaged soap which was very successful upon being launched in the market.
4 pages (1000 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT