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Gnom [1K]
3 years ago
15

Combining a protective put with a forward contract generates equivalent outcomes at expiration to those of a:

Business
1 answer:
Juliette [100K]3 years ago
7 0

Answer:

Fiduciary call.

Explanation:

Foreign exchange market can be defined as type of market in which the currency of one country is converted into that of another country.

For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.

A covered interest arbitrage can be defined as trading strategy in which an investor minimizes his or her currency risk by using a forward contract to hedge against the interest rate difference between two countries i.e the exchange rate risk. Thus, it's considered to be the most common interest rate arbitrage around the world.

Generally, when a protective put is combined with a forward contract it would generate equivalent outcomes at expiration to those of a fiduciary call.

This ultimately implies that, a fiduciary call combines both a call option and a bond that's risk free and matures on the expiry date of an option.

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Answer:

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Explanation:

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3 years ago
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Increased grants and loans for college expenses would ________ the number of college graduates, while ________ wages paid to col
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Answer:

Increase; decreasing

Explanation:

Grants are specific amounts of money given to entities by government, individuals, organizations for a specific purpose in which the entity given the money doesn't pay back.

Loans are specific amounts of money, properties and the likes given to entities in exchange for future repayment in loan value along with interest.

When there are increases in the loan and grant for college expenses, there would be an increase in the number of graduates. But an increase in the number of graduates reduces the amount available for each graduate, thus decreasing wages paid to college graduates.

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3 years ago
A set of financial states made every 3 months is called a .
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Answer:

Quarterly statement.

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A quarterly statement happens 4 times a year (every 3 months).

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2 years ago
Diversification is good for shareholders. So why shouldn't managers acquire firms in different industries to diversify a company
dsp73

Answer:

The definition would be defined in the clarification portion below, according to the particular context.

Explanation:

  • Even before managers accomplish diversification besides trying to create a conglomerate whilst also buying other corporations, it is almost always accomplished at a premium surrounded by white market rates because once shareholders could effectively achieve consolidation according to their own besides investing money throughout multiple organizations.
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