In soccer the three energy systems are all used. The ATP-PC system for high intensity short bursts; the lactic acid system for intermediate bursts of longer distances‚ lasting about 90 seconds; and then finally the aerobic system for long efforts of low to moderate intensity. Football consists of short sprint‚ jogging‚ moderate paced running‚ walking and standing still. In soccer there are many different positions‚ all using different energy systems. The defenders stand still and but also have high
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MGMT E-2000 Fall‚ 2014 Problem Set 7 (Due Tuesday‚ Dec. 2) 1. (20 pts) On a recent day‚ Microsoft stock (symbol: MSFT) was at $25. Assume the nearby MSFT 25 call was selling for $1. Draw a hockey stick diagram for a long position in the MSFT 25 call. 2. (40 pts) If the MSFT 24 call is selling for $2.50‚ and the MSFT 25 call is selling for $1‚ construct a bull spread using these nearby 24 and 25 calls. a. (20 pts) Construct a table like the ones we did in class showing profit and loss
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Chapter 3 3. Discuss why international diversification reduces portfolio risk. Specifically‚ why would you expect low correlation in the rates of return for domestic and foreign securities? International diversification reduces portfolio risk because of the low correlation of returns among the securities from different countries. This is due to differing international trade patterns‚ economic growth‚ fiscal policies‚ and monetary policies among countries. 7. Some investors believe that
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CONTENTS ACKNOWLEDGEMENT …………………………..............................................1 EXECUTIVE SUMMARY ………………………………………………………………..2 PAIRS TRADING: INTRODUCTION……………………………………………………..3 KEY CHARACTERISTICS………………………………………………………………….5 INSTRUMENTS USED FOR PAIRS TRADING ………………………………………...8 STRATEGY …………………………………………………………………………………10 TESTING FOR MEAN REVERSION ……………………………………………………10 PAIRS TRADING MODEL ………………………………………………………………..11 a. Screening for Pairs b. Trading Rules c. Risk Management
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for a house that is worth $250‚000 ÷ 0.8 = $312‚500. We see that the bank factored in a haircut of $312‚500 - $250‚000 = $62‚500 to protect itself from credit risk and adverse fluctuations in property prices. We buy back the asset money over a long horizon of time by reducing our mortgage through annuity payments. 2. What do hedge funds do: (a) Hedge? (b) Speculate? (c) Arbitrage? (d) None of the above Answer: (a)‚ (b)‚ (c)
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price‚ so the arbitrageur can buy a long position in the target firm; when the firm is acquired‚ the stock price will increase and the arbitrageur will profit. The second type of merger is a stock for stock merger‚ which is the merger being studied in this case. In a stock for stock merger‚ the acquiring firm proposes to trade its own stock for the stock of the target firm. A typical position in this case is a long-short position in which the arbitrageur places a long position in the target firm and
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limited at $1.05 the group closed the position on the 22nd of May at $1.02 our realized profit was $15. The group also opened up a long position on USD/CAD of 12 contracts on 19th of May at 1.857 on 22nd of May the price increased to 1.0913 however the group did not closed the position due to technical analysis shown that there was still some spread before the short-term and long term moving average converges‚ on 29th of May the trade closed out at 1.860 and the realized profit $360CAD however‚ the group
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portfolios and swap the deletions and additions at the closing price. Upon announcement of the composite change‚ they can go long the stocks newly adopted and short sell deletions. For short sales‚ they go the securities lending market and borrow the stocks. They have to act fast since borrowing demand in the securities lending market shoots up upon announcements. This long position in additions and short position in deletions will be held until one day prior to the change date. And then unwind the
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MALL !!! MALL-UBID arbitr 2 MALL – UBID arbitrage December 9‚ 1998 Long 1 share of MALL at $22.75 Short 0.7159 shares of UBID at $25.55 This position is guarantees a “riskless” profit on June 8‚ 1999 !!! MALL-UBID arbitr 3 Game Plan Dec 9 1998 Jun 8 1999 Investment Payoff Long 1 share MALL $ 22.75 $ - Short 0.7159 shares of UBID $ (25.55) $ - Short Cash Proceeds* $ 25.55 $ 25.55 Long Margin Loan (cash) $ (11.38) $ (11.77) Short Margin Collateral (cash) $
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management‚ bottom-up investment strategies‚ performance evaluation. Assignment Questions 1. What do you think of Numeric as a firm? How are long-short products of Numeric different from its long-only products? Ans: The long-short products involved holding a portfolio of long positions in combination with a portfolio of short positions. For the long positions‚ Numeric would buy “good” stocks‚ and for the short positions‚ it would sell short “bad” stocks. The firm could exploit its ability
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