24. In a Treasury auction of $2.4 billion par value 91-day T-bills, the following bids were submitted: Bidder Bid Amount $500 million $750 million $1.5 billion $1 billion $600 million 1 2 3 4 5 Price $0.9940 $0.9901 $0.9925 $0.9936 $0.9939 If only these competitive bids are received, in what quantity and at what price the bidder 3 will receive T-bills?

24. In a Treasury auction of $2.4 billion par value 91-day T-bills, the following bids were submitted: Bidder Bid Amount $500 million $750 million $1.5 billion $1 billion $600 million 1 2 3 4 5 Price $0.9940 $0.9901 $0.9925 $0.9936 $0.9939 If only these competitive bids are received, in what quantity and at what price the bidder 3 will receive T-bills?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter8: Securities Law Considerations When Obtaining Venture Financing

Section: Chapter Questions

Problem 1cM

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The table below lists the principal amounts of each bill auctioned and the scale of bidding on 26th January 2018. Maturity Date Principal Amount Sold Aggregate Scale of Bids 26th February 2018 £500 million £2711.5 million 30th April 2018 £500 million £2869.0 million 30th July 2018 £2000 million £6134.5 million Calculate and comment on the significance of the bid-to-cover ratios given the size of the yields.
If bank X is quoting “A $1.5838/ bid and A $1.1682/€ ask” and bank Y is quoting “A $1.1684/€ bid and A $1.1690/€ ask”. If you buy € 2million from X at it’s A $1.1682/€ ask price and simultaneously sell € 2million to Y at it’s A $ 1.1684/€ bid price. Calculate arbitrage profit.
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A T-bill quote sheet has 120-day T-bill quotes with a 5.67 ask and a 5.61 bid. If the bill has a $10,000 face value, an investor could sell this bill for _____.multiple choice $9,815.56 $9,813.00 $9,811.00 $10,000
D6) Finance Your Beloved Machine’s current stock price is $90. YBM December 100 calls trade for $6. a. Adjust the options prices and terms of the contract for a 4:1 split. b. Adjust the options prices and terms of the contract for a 3:2 split
Given the bid-ask quotes for JPY/GBP 220-240, at what rate will: (a) Mr. Smith purchase GBP? (b) Mr. Brown sell GBP? (c) Mrs. Green purchase JPY? (d) Mrs. Jones sell JPY?
If the treasury bill has $10.000 par value 200 days to maturity and is quoted: Bid: 0,720 Ask: 0,630 then: a) The price for the buyer is $9.965 b) The price for the seller is $9.965 c) The price for the buyer is $9.970 d) The price for the seller is $9.960
8. Three risk-neutral bidders compete to purchase a Princess Beanie Baby. Suppose the bidders have (private) valuations V, = $12, V2 = $14, and V3 = $16. %3D A. In a Dutch (decreasing price) auction, the winning bid would be more than $16 b. exactly $16 c. less than $16 à. B. If it were a first-price, sealed bid auction, the price would be a. more than in part A. b. the same as in part A. c. less than in part A.
Suppose we are interested in bidding on a piece of land and we know one other bidder is interested. The seller announced that the highest bid in excess of $9,800 will be accepted. Assume that the competitor's bid x is a random variable that is uniformly distributed between $9,800 and $14,700. Suppose you bid $12,000. What is the probability that your bid will be accepted (to 2 decimals)? Suppose you bid $14,000. What is the probability that your bid will be accepted (to 2 decimals)? 1 What amount should you bid to maximize the probability that you get the property (in dollars)? I Suppose that you know someone is willing to pay you $16,000 for the property. You are considering bidding the amount shown in part (c) but a friend suggests you bid $12,900. If your objective is to maximize the expected profit, what is your bid? Select What is the expected profit for this bid (in dollars)? Check My Work
3. Suppose you hold a 1" price auction and the high bid received for the item is $60. A friend (who claims to be an expert in auction theory) tells you that, as long as all of the bidders in the auction are risk neutral, then you would have also received S60 if you had conducted an English or Dutch auction. Please discuss the correctness of this claim using your knowledge of auction theory.