题目内容（请给出正确答案）

[主观题]

Alecto Co, a large listed company based in Europe, is expecting to borrow €22,000,000 in f

our months’ time on 1 May 2012. It expects to make a full repayment of the borrowed amount nine months from now. Currently there is some uncertainty in the markets, with higher than normal rates of inflation, but an expectation that the inflation level may soon come down. This has led some economists to predict a rise in interest rates and others suggesting an unchanged outlook or maybe even a small fall in interest rates over the next six months.

Although Alecto Co is of the opinion that it is equally likely that interest rates could increase or fall by 0·5% in four months, it wishes to protect itself from interest rate fluctuations by using derivatives. The company can borrow at LIBOR plus 80 basis points and LIBOR is currently 3·3%. The company is considering using interest rate futures, options on interest rate futures or interest rate collars as possible hedging choices.

The following information and quotes from an appropriate exchange are provided on Euro futures and options. Margin requirements may be ignored.

Three month Euro futures, €1,000,000 contract, tick size 0·01% and tick value €25

March 96·27

June 96·16

September 95·90

Options on three month Euro futures, €1,000,000 contract, tick size 0·01% and tick value €25. Option premiums are in annual %.

Alecto Co, a large listed company based in Europe,

It can be assumed that settlement for both the futures and options contracts is at the end of the month. It can also be assumed that basis diminishes to zero at contract maturity at a constant rate and that time intervals can be counted in months.

Required:

(a) Briefly discuss the main advantage and disadvantage of hedging interest rate risk using an interest rate collar instead of options. (4 marks)

(b) Based on the three hedging choices Alecto Co is considering and assuming that the company does not face any basis risk, recommend a hedging strategy for the €22,000,000 loan. Support your recommendation with appropriate comments and relevant calculations in €. (17 marks)

(c) Explain what is meant by basis risk and how it would affect the recommendation made in part (b) above. (4 marks)

提问人：网友sycb01 发布时间：2022-01-07

参考答案

查看官方参考答案

如搜索结果不匹配，请联系老师获取答案

您可能会需要：

重置密码查看订单联系客服

安装简答题APP，拍照搜题省时又省心！

更多“Alecto Co, a large listed comp…”相关的问题

第1题

材料：

The endorsement of a nonnegotiable bill does not make the bill negotiable or give the transferee any additional right．A person to whom a nonnegotiable bill has been transferred by delivery and agreement to transfer title to the bill or to the GOODs which it represents acquires the title to the GOODs as against the transferor．The transferee may also notify the carrier of the transfer to him，and the carrier is then obligated directly to the transferee for any obligations the carrier owed to the transferor immediately before the notification．

More specifically，the carrier is liable to the owner of GOODs transported under a nonnegotiable bill，subject to the right of stoppage in transit．Besides having to be the owner of the GOODs covered by the nonnegotiable bill，the claimant in such a case must have actually relied in GOOD faith on statements made by the carrier on the bill．The carrier is liable for having stated on the bill that he received GOODs when in fact he had not，and for having delivered the GOODs in a quantity，kind，weight or condition other than as stated on the bill．

In general，the carrier must deliver the GOODs on demand of the consignee named in a nonnegotiable bill of lading．However，on the endorsement of a nonnegotiable bill，the GOODs may be delivered to a party entitled to their possession．The carrier is liable toward the person having title to，or a right to possession of，the GOODs for delivering them to a party not entitled to their possession．

问题：

The endorsement of a nonnegotiable bill transfers ________．

A.the title to the GOODs from the transferor to the transferee

B.the title to the GOODs from the transferee to the transferor

C.in no way the title to the GOODs from the transferor to the transferee

D.the GOODs to the party entitled to their possession

The transferee of a nonnegotiable bill acquires the title to the GOODs ________．A.by taking delivery of the bill and entering into an agreement to transfer title to the bill or to the GOODs

B.by having the carrier actually delivered the GOODs to him

C.by having the transferor endorsed the nonnegotiable bill

D.in no way

If the GOODs were thus transferred，and the carrier delivered the GOODs in a quantity，kind，weight or condition other than as stated on the bill，________．A.he is liable

B.he is not liable

C.it can not be determined whether he is liable or not

D.whether he is liable or not is to be determined by the law of the ship’s flag

In the event of a nonnegotiable bill has been actually transferred，if the carrier stated on the bill that he received GOODs when in fact he had not，________ is liable．A.he

B.the transferor

C.the transferee

D.the person having title to，or a right to possession of，the GOODs

点击查看答案

第2题

The negotiation mainly relies on improvisation, and no preparation is needed.

点击查看答案

第3题

Online learning is also called distance education. Many American colleges and universities have been offering it for years.

One example is New York University in Manhattan. The School of Continuing and Professional Studies began online classes in nineteen ninety-two. Its Virtual College has taught more than ten thousand students from across the United States and other countries.

Last year, the School of Continuing and Professional Studies launched NYU Online. It offers NYU's first online programs to earn a bachelor's degree. Programs are offered in three areas: leadership and management, information systems management and social sciences. University officials say classes are highly interactive, where students communicate with each other and their teachers. Some classes require students to all log in at the same time so they can attend live lectures by a professor. Students can also ask questions and work together on team projects. The university says classes are taught by NYU professors who have been trained in online teaching.

International students must take two admission tests before they can be accepted into the program. These are the SAT and the TOEFL. We will discuss these tests later in our series.

The cost to attend NYU Online depends on how many classes a student takes. It can cost as much as fifteen thousand dollars a year. NYU offers no financial aid for international students in this program. You can get more details at nyu.edu.

1. When did New York University start its online classes?

A. In 1990

B. In 1998.

C. In 1992.

D. In 1982.

2. Which of the following is NOT included in the online programs offering a BA degree?

A. Information Systems Management.

B. Finance and Economy.

C. Leadership and Management.

D. Social Sciences.

3. What can the students do in the online learning programs?

A. Communicate with each other and the teacher.

B. Attend classes and lectures together.

C. Ask questions and work together on team projects.

D. Students are taught by NYU professors in the classroom.

4. International students can be accepted into the program after ________ .

A. they take the SAT and the TOFEL

B. they go to New York University

C. they apply and log in

D. two years in the United States

5. How much does the online learning program cost per year?

A. $15,000.

B. $1,500.

C. It depends.

D. $5,000.

点击查看答案

第4题

Le taux d’emploi féminin en Chine est toujours parmi les plus élevés du monde.

点击查看答案

第5题

【判断题】Two important criteria are highly required when it comes to writing a message: a. being polite and professional in the text; b. recording all the facts correctly.

点击查看答案

第6题

Attention! Campus labs have high ignition potential because of , and heat sources

点击查看答案

第7题

Transferred epithet is also called hypallage.()

此题为判断题(对，错)。

点击查看答案

第8题

After the people of two countries come to understand each other and their interests are intertwined, relations between their governments and countries will be stable and peace and development will also be guaranteed.

点击查看答案

第9题

When faced with positive position, we tend to be risk-taking.

点击查看答案

警告：系统检测到您的账号存在安全风险

为了保护您的账号安全，请在“简答题”公众号进行验证，点击“官网服务”-“账号验证”后输入验证码“”完成验证，验证成功后方可继续查看答案！

微信搜一搜

简答题

点击打开微信

警告：系统检测到您的账号存在安全风险

抱歉，您的账号因涉嫌违反简答题购买须知被冻结。您可在“简答题”微信公众号中的“官网服务”-“账号解封申请”申请解封，或联系客服。

微信搜一搜

简答题

点击打开微信