Explain marking to market with an example
Explain marking to market with an example.
Expert
A stock is trading at $47, but you think this is seriously undervalued. You believe that the value must be $60. You buy that stock. How much do you say to people your little ‘portfolio’ is worth as $47 or $60? When you say $47 then you marking to market, when you say $60 you are marking to model or your model. Of course this is open to serious abuse and therefore it is usual, and frequently a regulatory need, to quote the mark-to-market value. When you are right about the stock value so then the profit will be realized like the stock price rises.
At Milan bourse, Fiat stock closed at EUR31.90 per share on Friday, September 10, 1999. Fiat trades as & ADR on the NYSE. One underlying Fiat shares equivalent one ADR. On September 10, the $/EUR spot exchange rate was $1.0367/EUR1.00. At this exchange
Under what circumstances will warrant’s value be high? Explain.
Leveraged Buy-Out (LBO): It is a specific kind of acquisition in which the takeover of the controlling interest in a company is prepared by employing a noteworthy amount of borrowed capital from the banks and or capital markets. Inter
What are different volatilities in vanilla equity option?
Describe difference between international financial management and domestic financial management?
Describe how exchange rate fluctuations influence the return from a foreign market measured in dollar terms. Describe the empirical evidence on the effect of exchange rate uncertainty on the risk of foreign investment.Mostly exchange rate fluctu
What are the difference between Capital Asset Pricing Model and Markowitz’s Modern Portfolio Theory?
Illustrates an example of term bootstrapping? Answer: know the market prices of bonds all along with one, two three or five years to maturity. So, you are asked to v
Illustrates an example of measure of risk aversion?
The United States contain experienced continuous present account deficits since the early 1980s. What do you think are the foremost reason for the deficits? What would be the consequences of continuous U.S. present account deficits?The present a
18,76,764
1945827 Asked
3,689
Active Tutors
1413578
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!