1. As an option writer‚ what is the best option to take when you forecast the market to be bullish? Sketch the profit/loss diagram and determine the in the money‚ out of the money and at the money. 2. The call option of Diamond Bhd stock has a striking price of RM30 and a cost of option RM2 per share with one month expiration date. The current market price of share is RM26. If you buy 3 lots (1 lots = 100 shares) of shares‚ calculate the profits or losses at the expiration date for each of the
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STRENGTHENING THE PHILIPPINE DISASTER RISK REDUCTION AND MANAGEMENT SYSTEM‚ PROVIDING FOR THE NATIONAL DISASTER RISK REDUCTION AND MANAGEMENT FRAMEWORK AND INSTITUTIONALIZING THE NATIONAL DISASTER RISK REDUCTION AND MANAGEMENT PLAN‚ APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: SECTION 1. Title. – This Act shall be known as the “Philippine Disaster Risk Reduction and Management Act of 2010”. Sec.
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CHAPTER 9 Mechanics of Options Markets Practice Questions Problem 9.8. A corporate treasurer is designing a hedging program involving foreign currency options. What are the pros and cons of using (a) the NASDAQ OMX and (b) the over-the-counter market for trading? The NASDAQ OMX offers options with standard strike prices and times to maturity. Options in the over-the-counter market have the advantage that they can be tailored to meet the precise needs of the treasurer. Their disadvantage
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Problem 1.8. Suppose you own 5‚000 shares that are worth $25 each. How can put options be used to provide you with insurance against a decline in the value of your holding over the next four months? You should buy 50 put option contracts (each on 100 shares) with a strike price of $25 and an expiration date in four months. If at the end of four months the stock price proves to be less than $25‚ you can exercise the options and sell the shares for $25 each. Problem 1.9. A stock when it is first issued
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is baWhy Options Are Better Than Futures For Hedging Futures trading can be used for two main purposes; Speculation and Hedging. While most retail futures traders get involved in futures trading for the purpose of leveraged speculation‚ it cannot be forgotten that the true purpose of futures contracts is for the purpose of hedging. Hedging using futures is technique most professional money managers use for decades. However‚ there is one main problem with hedging using futures and that is the
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2012 This is to certify that we interviewed Mr. Jojo Tamayo of Jamta Wireless Solutions‚ 04 Cmdr Raymundo St.‚ Morong‚ Rizal‚ as our expert for our Science Investigatory Project. Solar Powered Wireless Equipment for Multi-Purpose Disaster Risk Reduction Questions for Mr. Ruel Lopez of MVERT (Morong Volunteer Emergency Response Team): 1. How to make our project waterproof? Answer: Put the project on a High place or secure it with a glass case 2. What are we going to do to improve
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Risk Reduction Techniques in Management Decision Making 11/3/2009 ------------------------------------------------- 1. Sensitivity Analysis This is a technique that shows how different variables affect the value of a particular variable. For example‚ it shows the affect on profit following a change in sales price and/or volume. Pros: Sensitivity analysis shows the sensitivity of economic payoffs to uncertain values such as discount rates. Management can see the profitability of a
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publishing industry and mass media technology and for the magnitude of higher education. The main differences between British English and American English are pronunciation‚ spelling and lexicon. However‚ syntax is not a big difference. Now we are going to have a glimpse at each‚ illustrating them with some examples. Referring to pronunciation we can settle some basic parameters to see the difference between dialects. First we have the merger of [I] and [å] before nasal consonants‚ makes pin and pen
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Exposure risk managers can hedge exchange rate risk with either currency futures or currency options. It is generally suggested that hedgers should choose a hedge instrument that matches the risk profile of the underlying currency position as closely as possible. This advice‚ however‚ ignores the possibility that the hedging effectiveness may differ for the alternate risk management tools. This study compares the effectiveness of currency futures and currency options as hedging instruments
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Explain the main differences between absolute and relative morality (25 marks). Absolute morality is morality with fixed rules. An absolutist argues that moral actions are right or wrong in themselves – regardless of circumstances‚ cultures or intention. They believe in ethical absolutes – rigid moral rules true for all time in all places and situations; they are facts – morality is objective. Most absolutists follow a set of rules that they view as universal truth – a religious person may see their
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