return investment fund
Please prepare a written report in a form of a pdf file, that will include your individual solution to the following problem. Attach also a separate file with all necessary calculations.
Problem to be solved:
The absolute return investment fund is considering completing the portfolio with one company in three months from 20th April 2020. The manager ask you to choose preferred company on your own. The the value of the entire contract includes
You are authorized to pay for the whole contract maximum 1000000USD (or its equivalent in foreign currency given spot exchange rates from 20thApril 2020). Please explain the details of a deal, and calculate its. cost separately for stock, hedging against market risk, hedginf against interest rate risk considering the following assumptions: