Financial Risk Management‚ FIN3FRM Semester 2‚ 2012 Assignment 1 Q.1 An investor enters into a short forward contract to sell 100‚000 British pounds for U.S. dollars at an exchange rate of 1.9000 U.S. dollars per pound. How much does the investor gain or lose if the exchange rate at the end of the contract is (a) 1.8900 and (b) 1.9200? (2 points) Solutions: a) The investor as part of obligation for selling pounds‚ because of his obligation to sell
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Intel shares. As indicated in the table below‚ the share price is $19.56 and January put option with a strike price of $17.50 costs $0.475. The investor is comparing two alternatives to limit downside risk. The first is to buy 1 January put option contract with a strike price of $17.50. The second involves instructing a broker to sell the 100 shares as soon as Intel’s price reaches $17.50. Discuss the advantages and disadvantages of the two strategies. Strike Price 15.00 17.50 20.00 22.50
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Employers liability Cases Walker v Northumberland County Council (1995) This case is notable as one of the first successful claims for work-related stress. Mr Walker was employed by Northumberland County Council as a senior social worker. At the time of the case‚ he had worked for the authority for 17 years‚ dealing mainly with cases of child abuse. In the 1980s‚ his workload gradually increased to such an extent that in 1986 he suffered a nervous breakdown. This was diagnosed by his GP who recommended
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study Sisters of ST Joseph of Peace health‚ and hospital services v. Russell -Nature of case: appeal from judgment granting insurer’s motion for directed verdict in action to recover cost of hospital care. -Fact summary: Sisters of St. Joseph of Peace‚ Health‚ and Hospital Services (P) sued Aetna (D) to recover payment for medical care provided to Russell (D) based on
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Fixed-Price Contract or Cost-Reimbursement Contract Willie Glover BUS 501 February 20‚ 2011 Dr. Nick Nayak Abstract Fixed-price contracts and cost-reimbursements are two different forms of contracts used by the federal government while determining contract pricing. Contracting officers may use either when contracting however there are several types of fixed-price contracts. Fixed-price type of contracts provide for a firm price or an adjustable price. Fixed-price contracts consist of firm-fixed-price
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forward and futures contracts are traded on exchanges. b) Forward contracts are traded on exchanges‚ but futures contracts are not. c) Futures contracts are traded on exchanges‚ but forward contracts are not. d) Neither futures contracts nor forward contracts are traded on exchanges. 2. Which of the following is not true (circle one) a) Futures contracts nearly always last longer than forward contracts b) Futures contracts are standardized; forward
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Contract Bundling 1. What is contract bundling? According to FAR 2.101 the definition of a bundled contract or bundling refers to the consolidation of two or more procurement requirements for goods or services previously provided or performed under separate smaller contracts into a solicitation of offers for a single contract that is likely to be unsuitable for award to a small business. What this really means is that contract bundling happens when two or more contracts intended for small businesses
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January 7‚ 2014 TITLE: THE REGENCY GRAND HOTEL I. SUMMARY II. 3 ISSUES 1. The employees had much difficulty trying to distinguish between a major and a minor issue/decision 2. Becker introduced the practice of empowerment so as to replicate the successes that he had achieved back home. 3. The good working relationships that were established under the old management had been severely strained. III. DISCUSSION QUESTIONS 1. Symptoms A. We could clearly see that there will
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Nature and Classes of Contracts Deepinder Grewal July 17th‚ 2015 MAN 224 CollegeAmerica Fort Collins Dr. George Ackerman Nature and Classes of Contracts The provision that the law allows if a party to the contract fails or refuses to perform it is the breach of contract. A breach of contract is defined as failing of one or more parties to implement the obligations assumed under the contract (Ashcoft & Ashcoft‚ 2010). It can allow the other party to take an action against them
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Law of Agency – the Contracts Act 1950 Great Northern Railway Co v Swaffield states that where impossible to get principal’s instructions‚ the agent’s action is necessary to prevent loss and the agent has acted in good faith‚ an agency of necessity arises. The Contracts Act 1950 states that an agent has to obey principal’s instructions. The Contracts Act 1950 states that an agent has to be careful‚ diligent and use any skill that he may
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