Find the Approximate Market Value of a Long Position in an FRA

question 13

Multiple Choice

Find the approximate market value of a long position in an FRA at a fixed rate of 5 percent in which the contract expires in 20 days,the underlying is 180-day LIBOR,the notional amount is $25 million,the 20-day rate is 7 percent,and the 200-day rate is 8.5 percent.

• A)$433,658
• B)-$454,954
• C)$322,819
• D)-$322,819
• E)$454,954

Analyze the empirical performance of conventional and conditional CAPM, including the impact of human capital and firm size on model fit.

Understand the prerequisites for testing CAPM, including the details of the market portfolio.

Comprehend the methodologies and implications of regression tests in CAPM.

Describe the extension and predictive power of Fama-French three-factor and multifactor models over CAPM.

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Worker Morale

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Social Leadership

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A leadership approach where decisions and instructions are given directly to subordinates, emphasizing control and authority.

Strength-Based Leadership

A leadership approach focusing on identifying, developing, and leveraging individual strengths and talents within a team or organization for greater effectiveness.