derivative future hedging

$10-30 AUD

Closed

Posted

over 8 years ago

$10-30 AUD

Paid on delivery

In practice, even without maturity and underlying mismatch, hedging using futures does not always require a one-to-one hedge ratio. Tailing factor needs to be considered. Suppose the current spot price is $3. With 50 percent of the probability, the spot price will increase or decrease by 1 dollar for each year as shown in the graph below. If the annual discrete compounding risk-free rate is 10%, and the cost of carry offsets the convenience yield exactly, then what is your hedging strategy? (10 marks)

Project ID: 8798025

About the project

9 proposals

Remote project

Active 8 yrs ago

Looking to make some money?

Email address

Benefits of bidding on Freelancer

Set your budget and timeframe

Get paid for your work

Outline your proposal

It's free to sign up and bid on jobs

9 freelancers are bidding on average $32 AUD for this job

@samin59

Hello, without taking much of your time, let me introduce myself to you as a potentially ACCA qualified Accountant with strong experience in Accounting, Audit, Finance, economics, and business plans, business related subjects. Please contact for quality and result oriented services. Regards

$50 AUD in 3 days

4.9

(153 reviews)

6.7

@sheak

Hello! I am an experienced true professional with hundreds of reviews on this website. I have all the required skills and I would love to work with you on long term basis. Basically i am a Chartered Accountant and hold masters degree of economics. I am expert of Microsoft office with over 13 years of professional experience. I am extremely interested in this position and willing to start asap. Please reply back to discuss further. Thank you! Consider it done professionally. Thanks..........................................................................................!

$60 AUD in 2 days

4.9

(29 reviews)

6.0

@venkatesh1312

A proposal has not yet been provided

$30 AUD in 1 day

4.9

(37 reviews)

5.6

@brokenaiub

Hi, I am A. R. Aiub Ali a Recent Graduate, completed MBA with a major in Accounting & Finance. I have been working as a professional Academic Writer since 2013. I am hardworking, punctual and dedicated to my work. I am a professional freelancer who promised to render quality services within the required timeline.

$40 AUD in 2 days

4.9

(22 reviews)

4.2

@SRILANKANUCOZ

A proposal has not yet been provided

$25 AUD in 1 day

0.0

(0 reviews)

0.0

@dilipdubey

I have all knowledge about share market.i also analyst works in one of the most complicated areas of financial trading. A derivative is something which is bought and sold, but is not a specific product in itself, such as stock in a company or a commodity like gold. Instead a derivative is something which derives its value from the price of something else.

$20 AUD in 1 day

0.0

(0 reviews)

0.0

@sarwarimran

Hi! It would be an honor for me to work with you on long term basis and I assure you the timely submission of a top notch quality work. I have five years of working experience and currently I am managing a team of professional writers including two CFAs. Looking forward to hear from you. Thank you in anticipation.

$25 AUD in 1 day