1)A T-bill with face value $87,000 and 21 days to maturity has a discount from par bid and ask of 4.6% and 4.4%, respectively. What is the price of the T-bill? What is the T-Bill's bond equivalent yield
2) A T-bill with face value $10,000 and 87 days to maturity is selling at a discount of par of 99 1/32.What is the price of the T-bill? What is the T-Bill's bond equivalent yield?
3) Suppose an asset you currently own was bought for $105,516 and is now worth $650,000. What is thetotal, standard return this asset has produced? What is the asset's log return?
4) Suppose an asset you currently own was bought for $105,516 and is now worth $650,000. Additionally, the asset has produced $50,321 in cash flows since you have owned it. What is the total, standard return this asset has produced? What is the asset's log return?
5)Suppose you short sell 100 shares of IBM, now selling at $120 per share. What is your maximum possible gain, neglecting transactions expenses? What is your maximum loss?
6) Dee Trader opens a brokerage account, and purchases 300 shares of Internet Dreams at $40 per share. The broker requires an Initial Margin of 65% and a Maintenance Margin of 40%.
a.) What is the total value of Dee's equity position?
b.) How much does Dee put up initially?
c.) How much does Dee's broker put up initially?
d.) At what point would Dee face a Margin Call?
e.) If the price goes up to $50...
* What is the stock's (standard) return?
* What is the strategy's (standard) return?
* What is the strategy's excess (standard) return?
* Did Dee face a Margin Call?
* If Dee did face a Margin Call, what is the Shortfall she needs to make up?
f.) If the price goes down to $20...
* What is the stock's (standard) return?
* What is the strategy's (standard) return?
* What is the strategy's excess (standard) return?
* Did Dee face a Margin Call?
* If Dee did face a Margin Call, what is the Shortfall she need to make up
7) Suppose that you bought IBM 5 years ago at a price of $128 per share. The price has increased to $150...
a.) What is Standard Return for IBM's Stock over the entire 5 year period assuming IBM paid no dividends over the 5 years?
8)Suppose that you bought GE 6 years ago at a price of $128 per share. The price has decreased to $75...
a.) What is Standard Return for GE's Stock over the entire 6 year period assuming that GE paid no dividends over the 6 years?
b.) What is the Log Return for GE's stock over the entire 6 year period assuming that GE paid no dividends over the 6 years?
c.) What is Standard Return for GE's Stock over the entire 6 year period assuming that GE paid $2.50 in dividends in each of the 6 years?
d.) What is the Log Return for GE's stock over the entire 6 year period assuming that GE paid $2.50 in dividends in each of the 6 years?
e.) What impact did dividends have on GE's calculated returns?
f.) Find the annually-compounded year-by-year return for parts a-d
b.) What is the Log Return for IBM's stock over the entire 5 year period assuming IBM paid no dividends over the 5 years?
c.) What is Standard Return for IBM's Stock over the entire 5 year period assuming IBM paid $2.50 in dividends in each of the 5 years?
d.) What is the Log Return for IBM's stock over the entire 5 year period assuming IBM paid $2.50 in dividends in each of the 5 years?
e.) What impact did dividends have on IBM's calculated returns?
f.) Find the annually-compounded year-by-year return for parts a-d
9) Suppose that, over a 125 day period, Mike Inc.'s stock price experienced (positive) Standard Returns of 12%.
a.) Convert the Standard Return into a Log Return.
b.) What would the annualized Standard Return be?
c.) What would the annualized Log Return be?