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3 years ago

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What are THREE purposes of monetary policy? A to eliminate competition B. to promote price stability c. to eliminate unemploymen

t D. to devalue foreign currency E, to promote economic growth F to control federal spending

1 answer:

Oksanka [162]3 years ago

8 0

Answer:

c. to eliminate unemployment,B. to promote price stability and F. to control federal spending

Explanation:

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________ staff the phones, conduct internet live chats, and respond to e-mail and solve customer or employee problems. helpdesk

aleksandr82 [10.1K]

Should be Human Resources. (HR)

3 0

3 years ago

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:

<em>$1006 </em>

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

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

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

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

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

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

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

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

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

<em>Finally determine the maximum net gain when 400 options are traded</em>

<em>= 10.06 * 400 / 4 </em>

<em>= 10.06 * 100 = $1006 </em>

3 0

3 years ago

Myriad Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $320 million on January 1, 2018, for $283,294,7

Olegator [25]

Answer:

<u>Balance sheet:</u>

Net liability = $285,349,947

<u>Income statement:</u>

Interest expense = $34,055,227

Statement of cash flows:

Operating: $32,000,000

Investing: Nil

Financing: $283,294,720

Explanation:

The workings are attached:

<u>Balance sheet</u>

Net liability = carrying value at the end of the year = $285,349,947

This will appear in the balance sheet as net liability.

<u>Income statement:</u>

Interest expense will be appearing in the income statement.

Interest expense = $32,000,000

<u>Statement of cash flows:</u>

<u>Operating cash flow:</u>

Cash flow from operating activities (CFO) indicates the amount of money a company brings in from its ongoing, regular business activities, such as manufacturing and selling goods or providing a service to customers. It is the first section depicted on a company's cash flow statement.

Operating: It is the interest expense = $32,000,000

Investing cash flow:

Cash flow from investing activities is one of the sections on the cash flow statement that reports how much cash has been generated or spent from various investment-related activities in a specific period. Investing activities include purchases of physical assets, investments in securities, or the sale of securities or assets.

Investing: This will be nil, as this is not an investment

Financing cash flow

Cash flow from financing activities (CFF) is a section of a company's cash flow statement, which shows the net flows of cash that are used to fund the company. Financing activities include transactions involving debt, equity, and dividends

Financing: This will be the $283,294,720

4 0

3 years ago

An analytical technique used by management to focus attention on the most significant variances and give less attention to the a

vovikov84 [41]

Answer:

Management by exception

Explanation:

This is a practice of examining the financial as well as operational results of a business and bringing to management only those differences that show a significant difference between the budgeted and actual amounts. This allows managers to focus on the highly important variances that can affect the growth and profitability of a company significantly. This concept, can however be fine-tuned where small variances are shown but to low-level managers whilst the senior managers will look at the large variances.

8 0

3 years ago

Laws Corporation is considering the purchase of a machine costing $16,000. Estimated cash savings from using the new machine are

Stella [2.4K]

Answer:

14%

Explanation:

Let IRR from machine be represented with i

Now, $4,120 * Cumulative PV factor (i, 6 periods) = $16,000

Cumulative PV factor (i, 6 periods) = $16,000 / $4,120

Cumulative PV factor (i, 6 periods) = 3.883

Now, we refer to PV factor table, the PV Factor (3.883) falls nearest to i =14%. (See proof in the attached table as attached below)

So therefore, IRR = 14%

So, the machine's internal rate of return is closest to 14%.

5 0

3 years ago