#### Details of this Paper

##### Calculate Current present value and Prior present value

Description

solution

Question

Please show me the math for the following;FV = ?\$2,500, n = 1.5, I = 0.25% (2,491);from the following;Key Variables January February March;Number of units per contract 5,000 5,000 5,000;Spot price per unit \$90.20 \$90.50 \$90.60;Forward rate per unit \$91.50 \$91.20 \$90.60;Original forward rate per unit \$92.00 \$92.00 \$92.00;Fair value of forward in future \$s;Original forward value;(5,000 ? \$92) \$460,000 \$460,000 \$460,000;Current forward value;5,000 ? \$91.50 \$457,500;5,000 ? \$91.20 \$456,000;5,000 ? \$90.60 \$453,000;Change ? Gain (loss) in forward;value \$ (2,500) \$ (4,000) \$ (7,000);Discount rate 6% 6%;Present value of the above fair value;FV = ?\$2,500, n = 1.5, I = 0.25% (2,491);FV = ?\$4,000, n = 0.5, I = 0.25% (?);FV = ?\$7,000, n = 0.0, I = 0.25% (?);Current present value (2,491) (?) (?);Prior present value 0 (?) (?);Change in present value (2,491) (1,504) (3,005)

Paper#24274 | Written in 18-Jul-2015

Price : \$27