Chapter 5 Currency Derivatives Lecture Outline Forward Market How MNCs Can Use Forward Contracts Non-Deliverable Forward Contracts Currency Futures Market Contract Specifications Trading Futures Comparison of Currency Futures and Forward Contracts Pricing Currency Futures Credit Risk of Currency Futures Contracts Speculation with Currency Futures How Firms Use Currency Futures Closing Out a Futures Position Transaction Costs of Currency Futures Currency Call Options Factors Affecting Call
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Finance can be through of as the study of the following 3 questions: 1. In what long-term assets should the firm invest? (Capital budgeting) 2. How can the firm raise cash for required capital expenditures? (Capital structure) 3. How should short-term operation cash flows be managed? (Working capital management) Forms of business organization: Proprietorship- single owner Partnership- more than one owner Corporation- legal entity separate and distinct form its owners and managers. Corporations
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Overview of the objectives of strategic financial management What is financial management? That part of management accounting concerned with setting financial objectives‚ planning and acquiring the optimum finance to meet them‚ and seeing that fixed and working capital are effectively managed.’ (CIMA). Two fundamental questions: 1. What investments should a firm make? Long term investments are referred to as capital investment projects’ e.g. build a new supermarket or factory. 2
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ALL FI515 Week 5 Exam Answers ------------------------------------------------- Top of Form QUESTION 1: Which of the following statements is CORRECT? 1. One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability. 2. It is generally easier to transfer one’s ownership interest in a partnership than in a corporation. 3. One of the advantages of the corporate form of organization is that it avoids double taxation. 4. One of the advantages of a
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ANSWERS TO END-OF-CHAPTER QUESTIONS 14-2 The two principal reasons for holding cash are for transac¬tions and compensating balances. The target cash balance is not equal to the sum of the holdings for each reason because the same money can often partially satisfy both motives. 14-4 The four elements in a firm’s credit policy are (1) credit standards‚ (2) credit period‚ (3) discount policy‚ and (4) collection policy. The firm is not required to accept the credit policies employed by its
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proceeding. 3. The eighth amendment bars what? U.S. constitutional amendment forbidding excessive bail‚ excessive fines‚ and cruel and unusual punishment 4. Solitary confinement AKA administrative segregation‚ why is it necessary? A critical management tool for separating “dangerous and disruptive” inmates who pose a threat to the safety of guards or fellow prisoners. 5. Sometimes deadly force is permissible in order to prevent what from happening? When the officer has a reasonable belief
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Section-A 1. Discuss management accounting as an effective tool of financial control. 2. What do you mean by cash from operating activities? How is it calculated? 3. The “volume-cost-profit relationship provides management with a simplified framework for organizing its thinking on a number of problems.” Discuss 4. Recently a conference speaker discussing budgets & standard costs made the following statement- “Budgets & standard costs are not the same things‚ they have different purposes
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S K Mondal’s IC Engine GATE‚ IES & IAS 20 Years Question Answers Contents Chapter – 1: Gas Power Cycles Chapter - 2 : SI and CI Engines Chapter - 3 : Carburetion and Fuel Injection Chapter - 4 : Fuels Chapter - 5 : SuperCharging Chapter - 6 : Jet Propulsion Chapter - 7 : IC Engine Performances Chapter - 8 : Engine Cooling Chapter - 9 : Emission and Control Er. S K Mondal IES Officer (Railway)‚ GATE topper‚ NTPC ET-2003 batch‚ 12 years teaching experienced‚ Author of Hydro Power
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Mock Exam Questions Set 1 1. Identify and briefly describe the three forms of the efficient market hypothesis. The three forms of the efficient market hypothesis (EMH) are: The weak form. The weak form asserts that current stock prices fully reflect all available security market data The semi strong form. The semi strong form of the EMH asserts that public security prices fully reflect all information (including security market data). The strong form. The strong form of the EMH asserts that
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an adult undergraduate student. In providing your answers below‚ be sure you are using information for CAGS adult undergraduate programs and students.If the information is not “labeled” CAGS or adult undergraduate‚ then you can assume it applied to all CCU students. For example‚ there is only one academic catalog. However‚ in the academic catalog there is specific information for CAGS and the adult undergraduate programs. Use www.ccu.edu to answer the following. You will use tabs: About CCU Academics
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