Answer:
Explanation:
1st strategy : Selling pound forward
The spot rate of the pound is quoted at $1.51.
The one-year forward rate exhibits a 2.65% premium.
The one-year forward rate = 1.51 ( 1+ 0.0265)
= $ 1.55
Dollars received = 100000 * 1.55 = $155000
2nd strategy : Buying put option
The strike price of put = $1.54
premium on option is $.03
Amount received per option = $ 1.54 - $ 0.03 =$1.51
Total Dollars received = 100000* 1.51 = $ 151000
the best possible hedging strategy is Selling pound forward and receiving $155000
Monthly payment, p = $300
Duration of loan, t = 4 years
Interest rate, r = 7% = 0.07
n = 12, the compounding interval.
The value of the loan is
A = (4 yr)*(12 mo/yr)*($300 per mo) = $14400
Let P = the principal (the amount financed).
Then
n*t = 12*4 = 48
P(1 + 0.07/12)⁴⁸ = 14400
1.3221P = 14400
P = $10,892.14
Answer: $10,892 (nearest dollar)
Answer:
This is psychologically a trait.
Explanation:
The reason is that in psychology, trait means a character that has an influence on the person behavior. This character varies from person to person. We can see that the some people who study from Harvard were also the fraudster (Enron Company Collapse). So this not a blame to Harvard University. What I am trying to say is that gaming people was in their character and that Harvard don't encourages unethical actions. This is in the character of the people and this is trait that these characters influence the person behavior and he takes actions which are based on this character.
All else equal, if the required reserve ratio falls the money multiplier increases.
<h3>Required Reserve Ratio</h3>
- The amount of each deposited dollar that a bank is required to hold in reserve with the Fed is known as the necessarily required reserve ratio.
- Banks are permitted to allocate higher percentages of incoming deposits to Excess Reserves rather than Required Reserves if this number falls, which will increase the rate of loan growth.
- Banks lend money to clients based on a portion of the available cash.
- In return for this power, the government imposes one condition on them: they must maintain a specific level of deposits to cover potential withdrawals.
- The reserve requirement is the amount that banks must reserve and above which they are not permitted to provide loans.
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Anton feels he needs to continue his relationship with his wife because if they broke up, it would be very costly for him financially and damage his business. Anton is showing <u>Constraint commitment</u>.
The desire to be together in the future—to have a lengthy time horizon for a relationship—is a key component of commitment.
Long-term relationship commitment has a significant impact on people's relationship behaviors, encouraging them to act in the couple's best interests rather than their own immediate self-interest.
One of the major advantages of taking a long-term perspective in partnerships like marriage is that the connection is assessed based on a longer time frame rather than just what is happening right now.
A here-and-now perspective would place a lot of pressure on the present exchange of positives and negatives as the basis for judging the relationship because few relationships are consistently gratifying.
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