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Course 37309

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If the price of the put option is 2.8 and it enables us to sell the underlying asset at strike price 133 next Monday then what is the break-even level of this assets's market price of Monday?

Note: The option purchase starts generating profit if the market price is below the break even level.

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Lets assume the following two year bond (time to maturity: two years from today):

Face value 1000 EUR;

Fixed coupon yield 1.5% (coupon is paid once a year at the end of each year);

Current discount rate is 5.1%.

Calculate and present the current market price of the bond (in EUR) and present answer in numerical format (without adding the EUR).

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Let us assume the following deposit rates 

Maturity%
1 year deposit4.1
2 year deposit7.1

Please calculate the expected forward interest rate for deposit starting at the end of first year and lasting one year (one year forward rate). 

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If EUR/USD=1.37 and EUR/JPY=144.32 then what would be the exchange rate for USD/JPY which excludes the possibility of arbitrage?

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One period loan contract has a principal amount of 100000 EUR. 

The probability of default is 3.9 %.

In case of default on average 50% of principal value of the loan is lost due to the legal costs and fire sales price of the collateral. 

What is Expected Loss of this loan contract? 

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Imagine that you will invest into appartment which delivers you a net cash flow (after all expenses) of 7000 EUR per year. This cash flow lasts forever. What would be a price of this appartment if the discount rate of such projects would be 8.1%?

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If average stock portfolio would yield 5.7% per annum then how much time would it take for a portfolio to increase 3 times in value if all profits are reinvested? State the answer as a number with 2 decimals (for example, 13.02).

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How much time would it take for the stock portfolio to double in value if the rate of return is 8.4%? Use the rule of 70 to find the answer [just google it]. State the answer as a number with 2 decimals (for example, 13.02).

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An insurance company purchases corporate bonds in the secondary market with six years to maturity. Total par value is $55000000. The coupon rate is 11%, with annual interest payments. If the required rate of return is 6.1 percent, what will the market value of the bonds be then? State the answer as a number with 2 decimals without $ sign.

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A bond has a face value of $1000, fixed coupon rate of 12.7% and 3 years to maturity. The discount rate is 7.7%. If Macaulay duration equals to 2.69, what is modified duration in this case? State the answer as a number with 2 decimals (for example, 3.12).

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