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the price rose to 1.8289; on Wed the price changed to 1.8275. Calculate your profit/loss in USD on Tue and Wed.
Discuss whether you would consider hedging the exchange risk, how you would hedge using a forward contract, and your additional costs or savings.
What does this experience suggest about the determinates of health care costs, and the long-run scope for private health insurance even with subsidy and compulsion.
What price-quantity combination maximizes revenue. Calculate the maximum revenues. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price-quantity combination.
What will be the welfare effects, if any, of this merger. What cost advantages might be created. What actions, if any, do you think the government will take.
hy is the profile of Japanese leading online firms so different from the U.S.. How do the lessons discussed in the reading by Ellison and Ellison translate into the Japanese setting.
What are the contracting cost at ebay. EBay claims that it has only a small problem with fraud and misuse of the sytem. Does this imply that it is overinvesting in addressing potention contracting
Suppose the Federal Reserve purchased gold or foreign currency. How would this purchase affect the domestic money supply. use this example: lets say open market purchases of government bonds.
Using Exxon's information, what do you think would be the effect of increases/decreases in the dollar's exchange value on the firm's profitability.
Suppose both the 1-year and 11-year spot rates unexpectedly shift downward by 2 percent. What is the price of a forward contract otherwise identical to yours.
Do these macroeconomic factors affect any of your decisions regarding the price of your product or the quantity of the product you are choosing to produce. What other business decisions are impacte
She decides to sell the option at that time for $1.25 per share. How much has she made (or lost) on the hedging decision.
Summary of some of the current risks facing organizations engaged in international finance activities. Include a list and description of the tools organizations can use to manage risk in internatio
What is the forward price of your contract. Suppose both the spot rates unexpectedly shift downward by 1%. What is the price of a forward contract otherwise identical to yours.
Suppose price of oil jumps to $65.10. What will be the balance of your margin account. What price triggers a margin call.
Consider the externality/public good aspects of weather forecasts and argue for or against such a "privatization" of weather forecasting.
Define arbitrage and the law of one price. What role do they play in a market-based system. What do we call the 'one price' of an asset.
Who are the major participants in the foreign exchange market. What are the effects of an appreciating/depreciating exchange rate on the balance of payments.
If the margin on the contract is $12,000, what is the percentage return on the investor's position.
How might a portfolio manager use financial futures to hedge risk in each of the following circumstances. You own a large position in a relatively illiquid bond that you want to sell.
Are there any current or past news events related to wage inequality in this industry, Explain. What was the industry's method for determining that there was an inequality, Explain.
You purchase $1 million worth of francs on the spot market. Is there anything that you can do to hedge your bet? That is, is there some way to ensure that you won't lose all of your money in case t
Discuss the Optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly specialized investments.
You note that Sony stock is selling at $25. Each month, it either goes up 10% or down 8%. The interest rate is 1% per month. What is the value of a two-month call option to buy Sony at $26.
Explain how banks and individuals can use "covered interest arbitrage" to protect themselves when they make international financial investments.