You are a U.S. investor who holds a portfolio of French stocks. The market value of the portfolio is €20 million, with a beta of 1.2 relative to the CAC index. In November, the spot value of the CAC index is 4,000. The exchange rate is $1.1/€. The dividend yield, euro interest rates, and dollar interest rates are all equal to 4 percent (flat yield curves). a. You fear a drop in the French stock market (but not the euro). The size of CAC index contracts is €10 times the CAC index. There are futures contracts quoted with March delivery. How many contracts should you buy or sell to hedge the French stock market risk? b. You are optimistic about the French stock market [different scenario from part (a)] but fear a depreciation of the euro. How many euros should you sell forward? c. You have the following quotes in Chicago on euro options, maturity March. Should you buy or sell calls or puts to insure against currency risk? What is the premium?d. Calculate the result of your strategies (unhedged, hedged with March forward, insured with March options), assuming that your French stock portfolio is still worth €20 million in March. Simulate for different values of the spot €:$ in March, namely, €1 = $1, $1.1, $1.2.
First of all, we'll be leaving at 9:15 outside the main train station exit. Be sure to board the bus by 9:00 sharp.
We'll be visiting some of the most famous historical spots in Kyoto. Our first stop will be at the Golden Pavilion. a temple constructed in 1397. We'll be leaving there at 10:30. You'll have about forty-five minutes to stroll around the temple and its gardens.
Our next destination will be Ryoanji Temple. That's always a difficult one to pronounce. This temple is famous for its beautiful rock garden. We'll depart from the temple at 11:45.
Next, we'll have lunch bum 12:00 to 12:45.
In the afternoon, we'll be making a brief stop at Heian Jingu Shrine, which was constructed in 1895 m commemorate the 1,100th anniversary of the founding of the city of Kyoto.
After that, we'll head downtown and stop in Gion. Many people asked me about different traditional shopping areas, and this is a place we don't want to miss. You'll have about an hour to look around, and I'm sure you'll enjoy the atmosphere of the entire area--the shops, the homes, and the restaurants. We'll be leaving Gion at 2:30.
Finally, we'll visit Nijojo Castle, which was the residence of the first Tokugawa Shogun. You'll have about an hour to tour the castle, and we'll meet at the bus at 4:00.
(33)
A.At 9:00.
B.At 9;15.
C.At 9:50.
D.At 9:30.
A、corporate
B、incorporate
C、co-operated
D、incorporated
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