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2 years ago

If a bank needs to acquire funds quickly to meet an unexpected deposit outflow, the bank could:_________

1 answer:

7 0

If a bank needs to acquire funds quickly to meet an unexpected deposit outflow, the bank could borrow from another bank in the federal fund market.

Deposit outflows are the losses of deposits while depositors make withdrawals or demand prices. A deposit is a financial term that means cash held at a financial institution. A deposit is a transaction concerning a transfer of cash to another celebration for safekeeping. but, a deposit can refer to a portion of the money used as safety or collateral for the transport of an amazing.

The federal funds market consists of domestic unsecured borrowings in U.S. greenbacks via depository establishments from different depository institutions and positive other entities, more often than not government-backed businesses.

The federal funds rate is one of the maximum vital interest quotes within the U.S. economy. this is because it influences economic and financial conditions, which in flip have a pertaining to important factors of the broader economic system consisting of employment, increase, and inflation.

Learn more about the federal funds rate here brainly.com/question/8431971

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a trader creates a long butterfly spread from options with strike prices x, y, and z, where x < y < z, and y is exactly mi

Montano1993 [528]

Answer:

$1006

Explanation:

A long butterfly is created by following these steps

Long 1 call option for strike X ( highest premium say C)

Short 2 call option for Strike Y (premium =C-6.67 )

Long 1 call option for strike Z (premium = C-6.67 - 5.03 = C-11.70 where X<Y<Z

Here, Y-X = Z-Y =$11.70

i) whenever the price at maturity goes below the price of x ( no call option is executed )

payoff = 2*(C-6.67) -C-(C-11.7) = - 13.34 + 11.70 = - 1.64

ii) when the price at maturity is between X and Y, only call with strike X is executed

hence payoff = -1.64 +(P-X) where P is the Price at maturity

p - x = y-x = 11.70

hence maximum payoff = - 1.64 + 11.70 = $10.06

iii) When the price is between Y and Z , only call with strike X and Y are executed.

hence, payoff = -1.64 + (P-X) -2* (P-Y) = -1.64 +( 2Y - X - P) and this value decreases as P increases

the minimum payoff occurs when P=Z

So, maximum payoff = -1.64 + (Z-X) - 2*(Z-Y) = -1.64 + 23.4 - 2*11.7 = -$1.64

iv) When the price at maturity is more than Z , all calls are executed

hence, payoff = -1.64 +(P-X) -2* (P-Y) + (P-Z) = -1.64+(2Y-X-Z)

= -1.64+(Y-X -(Z-Y)) = -1.64+(11.7 - 11.70)

= -$1.64

the maximum payoff occurs when P=Y

considering the four options traded the maximum payoff = $10.06

Finally determine the maximum net gain when 400 options are traded

= 10.06 * 400 / 4

= 10.06 * 100 = $1006

3 0

3 years ago

Sunbed Company sells tanning beds that are shipped in large reusable containers. Customers are charged a deposit for each contai

kolbaska11 [484]

Answer:

Liability needs to be reduced by cash refunds that are made to customers as and when the containers are returned.

Cash refunds = Deposits collected * Percentage returned

Cash refunds = $100,000 * 95%

Cash refunds = $95,000

Date General Journal Debit Credit

Liability - Refundable Deposits $95,000

Cash $95,000

8 0

3 years ago

Below are transactions for Hurricane Company during 2021. a. On October 1, 2021, Hurricane lends $7,200 to another company. The

blondinia [14]

Answer:

ACCOUNT

interest expense 144 debit

interest payable 144 credit

rent expense 1200 debit

prepaid expense 1200 credit

unearned revenue 4600 debit

rent revenue 4600 credit

depreciation expense 3700 debit

acc dep machine 3700 credit

salaries expense 3200 debit

salaries payable 3200 credit

supplies expense 2600 debit

supplies 2600 credit

Explanation:

Interest is calculate doing:

principal x rate x time

7,200 x 0.08 x 3/12 = 144

rent

1,800 for 3 months there is 2 expired 1,800 x 2/3 = 1,200

earned revenue on rent

11,040 x 5 monhts / 12 = 4,600

supplies:

beginning + purchase - ending = consumed supplies

600 + 3,700 - 1,700 = 2,600

6 0

3 years ago

Politics, law, culture, and economy are all examples of ________ factors that can affect the ways in which companies produce and

WARRIOR [948]

Politics, law, culture, and economy are all examples of social factors that can affect the ways in which companies produce and sell their products in foreign markets.
Social factors is everything that could affect your life style. When your lifestyle change, your consumption pattern will also change and this will affect the products that will be sold in the market.

3 0

3 years ago

Wants to start a fashion boutique that will sell tailor-made garments and accessories. She plans to open boutique stores in life

Akimi4 [234]

Answer:

commercial bank people will help her in that regard

5 0

3 years ago