Answer:
number of contracts needed to hedge is 3714
Explanation:
given data
asset duration = 5 years
liability duration = 2.5 years
assets = $1,000 million
liabilities = $750 million
time = 8.5 years
currently selling = $99,000
contract = $100,000
to find out
How many futures contracts does the bank need to fully hedge itself against interest rate risk
solution
we get here no of contract that is express as
no of contract = (DA - k × DL) A ÷ (DF × PF) .......................1
here DA is asset duration and DL is liability duration and A is assets and DF is time and PF is currently selling and
here K is 
k = 
k = 0.75
so now put all value in equation 1
no of contract = (DA - k × DL) A ÷ (DF × PF)
no of contract = (5 -0.75 × 2.5) 1000 ÷ (8.5 × 99000)
no of contract = 3714
so number of contracts needed to hedge is 3714
Answer:
"Stop-loss order" is the right answer.
Explanation:
According to the question,
Purchase price,
= $50
Current selling price,
= $80
Current gains,
= $30
- Investors begin to give their earnings if somehow the market capitalization begins to fall beneath $80. In advance to minimize this, we need to set a purchase requisition of $80 for stop-loss.
- So whenever the market decreases beyond $80, with us investments are traded, and thereby the existing profits of $30 have been safeguarded.
Thus, the above is the correct explanation.
Answer: Option d:- Relational transparency is the aspect of authentic leadership.
Explanation:
The continued efforts of Teamwork has the fine objective of fulfilling the business goals. It can be only attained with fine authentic leadership. Relational Transparency finds the route cause for the problems of building relationships between co-employees. The Supervisor uses this strategy to mingle with the subordinates and conducts one to one interactive session with all level of employees every month.
The session will help employees to convey their working issues and also their innovative ideas to boost their career development. In this case, Rita may help Sally to overcome the problem of bonding relationship with co-workers with the help of propagating the method of having straightforward transparency to achieve the desired result of good communication.
Answer:
$94,000
Explanation:
Henry Jones contributed a cash of $53,300 to the partnership
The equipment had a book value of $25,500 and a market value of $32,900
The inventory had a book value of $51,900 and a market value of $16,000
The partnership assumed a note payable of $14,500 that was owed by Henry
Therefore, the amount that should be recorded in Henry's capital can be calculated as follows
= $53,300+$39,200+$16,000-$14,500
= $108,500-$14,500
= $94,000
Hence $94,000 should be recorded in Henry's capital account
