To demonstrate your ability to apply financial analysis concepts and techniques, complete the following problems from your textbook and include written responses with each as directed: ? Problem 23-2, "Futures" from Chapter 23, page 926. Explain how various types of derivatives, such as futures contracts, can be used as a risk management tool. ? Problem 17-5, "Currency Appreciation" from Chapter 17, page 726. Explain factors that can affect the appreciation or depreciation of currency. Provide full documentation of the process used to reach the solution. Use information from the textbook to inform your analysis, incorporating creativity, critical thinking, and real-life perspectives. Since the purpose of any real work is sharing and using the results, keep in mind that a thorough, professional presentation of your analysis and results is important. Complete the Unit 6 problem spreadsheet template provided below and submit in the assignment area. (17.5). Suppose that I Swiss Franc could be purchased in the foreign exchange market for 60 U.S. cents today. If the franc appreciated 10% tomorrow against the dollar, how many francs would a dollar buy tomorrow? Explain factors that can affect the appreciation or depreciation of currency. (23.2). A Treasury bond futures contract has a settlement price of 89?08. What is the implied annual yiels? Explain how various types of derivatives, such as futures contracts, can be used as a risk management tool.
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