CHAPTER 5 Determination of Forward and Futures Prices Practice Questions Problem 5.8. Is the futures price of a stock index greater than or less than the expected future value of the index? Explain your answer. The futures price of a stock index is always less than the expected future value of the index. This follows from Section 5.14 and the fact that the index has positive systematic risk. For an alternative argument‚ let µ be the expected return required by investors on the index so that E (
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Agreeing with the statement that public transport is less commonly used in the world than private transport due to some causes which prevent us from the use of public transport frequently.Total number of cars available in UK are increasing dramatically from 1888 and it is estimated that by by200 there will be 29 millions cars on the British road. This tremendous increase in car use causes the reduction in public transport which is now suggested as more efficient than cars because they don’t need
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no50–64% 65–74% 75–84% 85% + Pass Credit Distinction High Distinction Assignment 1 This assignment is a compulsory assessment task. Value: Due: 15% of final mark 12.00pm (midday) on the scheduled teaching day of Week 5 Topic: Marking criteria: Assessment 1 See guides to Assessments Imagine a country where long distance bus and taxi services are both provided by private interests‚ and‚ from a consumer perspective these services are viewed as substitutes. The demand for bus services is:
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just about anything delivered and in the time frame you want it delivered in. There are many factors that factors that are driving the transportation industry‚ we are going to look at what the trend and outlook for the transportation industry looks like for the next three years and also look at how Fuel and Government regulations are affecting the transportation industry. Fuel prices‚ the economy and government regulations are the major deciding factors that will determine the strength or weakness
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“A Report On Pricing and Technical Analysis of Derivatives” THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT EXECUTIVE SUMMARY The emergence of Derivatives market especially Futures and Options can be traced back to the willingness of the risk adverse economic agents to guard against themselves against the fluctuations in the price of Underlying asset. Derivatives‚ whose price is determined by the price of underlying asset‚ generally do not cause any fluctuations in the price of underlying
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Urban transport policy in Singapore is becoming more difficult to handle. In the early 1970s Singapore faced traffic chaos‚ a failing bus system‚ little money for infrastructure and acute awareness of space limitations. The answer was a hard-headed “bargain” that offered steady improvements in space-efficient public transport at the price of making ownership of space-wasting cars unattainable for most. This has been widely seen as a success However‚ both sides of this bargain are under growing
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Edit the following reports using the correct punctuation. The graphs below give information about commuting inside and outside London in 2009. Summarise the information by selecting and reporting the main features‚ and make comparisons where relevant. | | Source: Office for National Statistics Commuting inside and outside London in 2009 The graphs show the time it takes employees to commute to their workplaces and the mode of transport . They use figures that are given for both inside
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3. MOBILITY MODELS VANET can have both dynamic and static nodes. The dynamic nodes are vehicles‚ cars and motorbikes. On the other hand‚ the static nodes are the fixed equipment along the roads. Both types of nodes are participating in the routing process that includes route discovery‚ route maintenance and packet forwarding. The high mobility of movable nodes has an unfavorable impact in the network performance. Therefore‚ it is highly required to study the mobility models for VANET‚ and the effect
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Incoterms are useful for companies involved in international freight transactions. These incoterms are used to determine risks and responsibilities between buyers and sellers and are defined as follow: EXW (Ex Works): Is when the buyer assumes all costs and risks involved in taking the goods from the seller’s to the destination. The seller’s requirement is to make the goods available at his locations (works‚ factory‚ and warehouse). This term represents minimum obligation for the seller. This term
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In the past‚ transportation management was a tactical concern – a necessary cost of conducting business‚ which does not have much impact on profit margins. Today‚ rising fuel prices and increased pressures for improved service have made transportation management a strategic issue. Companies have to meet and exceed customer expections if they are to be the preferred service and goods provider. A transportation management system (TMS) is an end- to -end software solution that is a part of supply
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