S&P/ASX 200 futures contract is 10% and the stock index is currently 4400. Each contract has a multiplier of $25. How much margin must be put up for each contract sold? If the futures price falls by 1% to 4356‚ what will happen to the margin account of an investor who holds one contract? What will the investor’s percentage return based on the amount put up as margin be? The value of margin must be put up for each contract sold: 4400 x 25 x 10% =$11000 When the futures price fall 1%
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Prepared by: SEOKE L.J. ASSIGNMENT TOPIC: a weak currency or a strong currency for the South African economy? What are the pros and cons of a weak currency or a strong currency in South Africa? Discuss. A. Introduction Cartoonists in South Africa have a long-running joke that shows a bruised and feeble coin‚ the rand‚ being beaten up by two muscled thugs‚ the dollar and the pound. In 2001 South Africa ’s currency was knocked down by two-fifths against the greenback‚ much of it in
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1. As an option writer‚ what is the best option to take when you forecast the market to be bullish? Sketch the profit/loss diagram and determine the in the money‚ out of the money and at the money. 2. The call option of Diamond Bhd stock has a striking price of RM30 and a cost of option RM2 per share with one month expiration date. The current market price of share is RM26. If you buy 3 lots (1 lots = 100 shares) of shares‚ calculate the profits or losses at the expiration date for each of the
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Impact of Currency Devaluation on Trade Balance of Pakistan In a developing country large amount of exports consist of primary commodities and exports earnings due to the relative inelasticity of supply and uncertain production levels of primary goods‚ are not only unpredictable‚ but also vulnerable to a number of factors. The developing countries also depend upon the advanced industrial countries for most of their developmental needs (technology‚ capital‚ and producer goods) and consumption
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Question 1 What were the origins of the Asian currency crisis? In mid 1997‚ a financial crisis gripped most of the Asian countries and raised fears of a worldwide economic meltdown due to a financial contagion‚ a scenario that initially affects only a particular region of the economy that spreads to other countries whose economies were healthy‚ much like a transmitted disease. See‚ Asia attracted almost half the total capital inflow into developing countries because of the high interest rates
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Looking at the currency rates both on the internet and newspapers‚ we can see almost all the currencies in the world exchange rate United States dollar. Why should be like that ...?‚ Because the true United States Dollar is currently an international currency. Even information says all the countries that exist in the world save its foreign exchange reserves in the form of dollars. So that’s not surprising almost everyone in the world want to accept dollars‚ meaning dollar is believed as a means of
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Parliament passed the Currency Act of 1764 which terminated the making of paper money for the colonies. Colonist were subjected to only use gold and silver. But there wasn’t any gold or silver mines in America which caused a shortage of currency. So the only way the colonist could obtain gold and silver is to trade with England. This was only to ensure a profit for themselves. The Currency Act threatened to destabilize the colonial economy. Another act passed by Parliament that helped destabilize
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The costs and the benefits of Hong Kong’ currency board system A e f g w se f s f s f s f s f s f s f s f s f s f s f You Zhang 1148100 Introduction S b c d e f g w se f s f s f s f s f s f s f s f s f s f s f s f s Hong Kong‚ a province in the west-east of China‚ has developed from a small fishing community into an international city in modern times which is contributes to the economic policy as well as political policy. S b c d e f g w se f s f s f s f s f s f s f s f
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Effects of a Strong Or Weak Philippine Peso Currency Two conflicting stories came out of a national paper this week. One announced that exporters are badly hurt by the appreciating peso while the other states that the Bangko Sentral ng Pilipinas (BSP) claims that the surging currency is beneficial to the Philippine economy. Those stories seem to tell the Filipinos that we cannot have our cake and eat it too. Whenever there is a good effect‚ there is a corresponding draw back. Let us take the first
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Hong Kong’s Experience in Operating the Currency Board System Priscilla Chiu Hong Kong Monetary Authority I. INTRODUCTION When Hong Kong revived the currency board arrangements in October 1983‚ it faced a financial world that was vastly different from that earlier in the century when currency boards flourished in British colonies and protectorates.1 Bank deposits had taken over currency notes as the predominant medium of exchange. Capital mobility had been significantly enhanced:
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