Risks in using a large amount of short-term finance
What are the risks associated with using a large amount of short-term financing for working capital?
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Using a large amount of short-term financing generally allows funds to be raised at a lower cost but increases the firm’s risk.
Explain the validity in various forms of Efficient-market hypothesis.
Stock price is $98; and European call option struck at $100 along with an expiration of nine months has a value of $9.07. There nine-month, compounded continuously, interest rate is 4.5%. So find out the value of the put option with the same strike and expirat
Explain in brief about the time value of money?
What are a bank's primary reserves? When the Fed sets reserve requirements, what is its primary goal?
What did you meant by the Value of a Contract? Answer: Value usually implies the theoretical cost of building up a new contract by simpler products, such as replicat
Explain the term functional form of coefficients in finite-difference methods.
What are the important observations about hedging error?
What is the Kelly Criterion?
How is arbitrage argument estimated?
You need to price an option that is paid for within instalments, and you can stop paying and lose the option. Which numerical method should you use?
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