1. You sold 200 shares of WOOF short of $24. After three years you closed your position at $17. woof paid and annual diviided of $1, what was the annualized (compound) return on the trade?
2. Ford uses an FRA (Forward Rate Agreement) at 0.85% to hedge their next rate re-set against higher rates. If 6 month Libor turns out to be 0.65%, what cash flow occurs on their $100m FRA? Calculation required.