1. An organization's finance department decides to go to the company's usual bank and take out a loan because the company's revenues for the month are projected to be less than its expenses. What type of decision does this represent?
2. What does it mean when it is said the U.S. is running a trade deficit? What impact do you think a trade deficit could have on interest rates?
3. How will your answers in a and b be affected if the option positions are not closed.