What is an example of what a business would write a check for

"Suppose a bank has an asset duration of 5 years and a liability duration of 2.5 years. The bank has $1,000 million in assets an

Galina-37 [17]

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 $\frac{liabilities}{assets}$

k = $\frac{750}{1000}$

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

3 0

3 years ago

Which of the following describes the financing activities section of the statement of cash flows?A) It reports on activities tha

olga_2 [115]

Answer:

C) It includes cash inflows and outflows related to long-term liabilities and equity.

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.

In the above option, option C is a match with the meaning of the financing activities.

Hence, all other options are incorrect.

5 0

4 years ago

The three traits an entrepreneur must possess to be successful are _____.

Yanka [14]

Hello,

Here is your answer:

The proper answer to this question is option A "<span>motivation, humility, and decision making". You honestly need motivation, humility, and decision making skills in order to be successful.

Your answer is A.

If you need anymore help feel free to ask me!

Hope this helps!</span>

7 0

3 years ago

Read 2 more answers

Actual sales volume for a period is 5,000 units. Budgeted sales volume is 4,500. Actual selling price per unit is $15 and budget

dlinn [17]

If the actual sales volume is 5000 units,budgeted sales volume is 4500, actual selling price be $15 per unit and the budgeted price per unit be $15.75 per unit then the sales price variance is -$3750.

Given that actual sales volume is 5000 units,budgeted sales volume is 4500 units, actual selling price be $15 per unit and budgeted price per unit be $15.75 per unit.

We are required to find the sales price variance of the data.

Actual Sales volume = 5,000 units

Budgeted sales volume = 4,500

Actual selling price per unit = $15

Planned selling price = $15.75

So, calculation of the sales price variance is given below:-

Sales variance =Actual quantity sold × (actual selling price - planned selling price)

=5000*(15-15.75)

=5000*(-0.75)

=-$3750

Hence if the actual sales volume is 5000 units,budgeted sales volume is 4500, actual selling price be $15 per unit and the budgeted price per unit be $15.75 then the sales price variance is -$3750.

Learn more about variance at brainly.com/question/15858152

#SPJ4

6 0

2 years ago

What is the process of dividing a broad target market into subsets of consumers, businesses, or countries who have similar needs

kap26 [50]

Answer:

Market segmentation

Explanation:

Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics.

Markets can be segmented on the basis of socio-economic groups (income), age, location, gender, lifestyle, use of the product (home/work, leisure/business..) etc. Each segment will require different methods of promotion and distribution. For example, products aimed towards kids would be distributed through popular retail stores and products for businessmen would be advertised in exclusive business magazines

Market segmentation makes marketing cost-effective, as it only targets a specific segment and meets their needs. it also leads to higher sales and profitability and also Increases opportunities to increase sales .

6 0

3 years ago

What is an example of what a business would write a check for​

What is an example of what a business would write a check for