Pricing of structured product

Topic: Pricing of structured product

Type of document Essay
Single spaced No

Subject area Mathematics and Economics
Academic level Ph. D.

Writing style Oxford
Writing language English (U.S.)

Number of sources 4

Number of pages 2 page(s) / approximately 550 words

Order deadline 2011-07-24 06:00 AM

Order additional information
The treasurer of a German Power Plant company importing coal from
Australia is uncertain about the exact date when he will pay in
Australian Dollars so tries to negotiate with his bank a forward
contract that specifies a period during which delivery can be made. He
wants to reserve the right to choose the exact delivery date to fit in
with his own cash flows.
Put yourself in the position of the bank. How would you price the
product that the treasurer wants?

By admin in Essays on August 21, 2015