Answer:
The answer is option (c) Short 34 contracts
Explanation:
Solution:
Given that
The information about the portfolio is as stated below:
The value of the portfolio = $8.5 million
The beta = 1.3
The future contract of S&P price = $1310
The size of contract = 250
Now,
To hedge the risk completely, the desired beta is =0
Thus,
The number of contracts is calculated as follows:
The Number of contract = (desired beta - portfolio beta)*portfolio value/(future price*contract size)
So,
The number of contracts = (0 - 1.3)*8500000/(1310*250) = -34
Then,
The negative sign means it is going short.
Hence,
A total of 340 contracts must be short.
Answer:
the business case
Explanation:
This argument is an example of a business case. A business case tries to state the reasons behind initiating a project. It gives the justification for undertaking a project. A company can generate it's profit through a business case. This question is making an argument on how canada's global markets can be expanded through diversity-related initiatives. The argument mentions supporters of diversity management in driving it's points.
Answer: Define Project Needs, Understand the Project Objectives, Define the Project Scope
Explanation: Project Scope is defined as the work that needs to be accomplished to deliver a product, service, or result with the specified features and functions.
The scope of the project should have a tangible objective for the organization that is undertaking the project
There are 3 main steps of project scope and they are:
1. Define Project Needs
2. Understand the Project Objectives
3. Define the Project Scope
Scope statement are the documentation of the scope of the project will explain the boundaries of the project, establish the responsibilities of each member of the team and set up procedures for how the work that is completed will be verified and approved.
Answer:
$21,800
Explanation:
The computation of 4-year revenue is as shown below:-
Bond Income of 4th Year = Face amount × Bond × 1 ÷ 2
= $500,000 × 8% × 1 ÷ 2
= $20,000
Interest Revenue = Bond Income + Amount of Discount Amortized
= $20,000 + $1,800
= $21,800
Therefore for computing the interest revenue we simply bond income with the amount of discount amortized.
Promissory estopplel is a contractual agreement based on a promise rather than on a written contract but is still enforceable and legal such as in regarding payment for services rendered so that the contractor is protected financially.
