Help? Please

[Klemm]

Have to answer these questions for school about 2 h , can anyone help please

1) What derivatives do you know? How do they work and what for are they used? Are there any differences among various derivatives? What are they? Companies operating in what industries are more likely to use derivatives for hedging?



2) The client has a short position in Nickel at the Cash price (price of the last trading day). The last 3 months Nickel curve is backward sloping (that is the Cash future is more expensive than the 3 months contract). The difference between the cash and 3 months prices is 3 000 USD. The client rolls over his cash date position to the 3 months date. As a result of this transaction the client has which of the following:

a) Profit of 3 000 USD per tone of Nickel
b) Loss of 3 000 USD per tone of Nickel
c) The money value of the client position remains the same because it is just the rollover of the existing position
d) The client gets profit of 3 000 USD today but is obliged to pay it back at the maturity date

Explain Your choice and show the calculations: ………………………….



THANK YOU!

 

[Optional]

The answer is:







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Do your own fucking homework!

 

[S2007S]

print this out and hand it to your college professor and ask him what he thinks?

you will hopefully get a nice A+++++++++++++++++++++++

 

[Klemm]

Thanks !

But can anyone answer the nr 2 qouestion

 

[S2007S]

Quote from S2007S:

print this out and hand it to your college professor and ask him what he thinks?

you will hopefully get a nice A+++++++++++++++++++++++

by the way that figure to your left is now around $600+ Trillion, its actually so large its almost impossible to find an actual figure.




:eek:

 

[S2007S]

Take notice the shape of the illustrations and that little pin in the upper right hand corner, ask your professor if he knows the outcome of what that signifies and maybe you could get another A++++++ and one of those happy face stickers......