FIN532M: Financial Derivatives Problem Set 2 DUE DATE: Feb. 12‚ 2015 1. How can you differentiate the forward price from the value of a forward contract? (2 points) 2. Explain why an FRA can be viewed as an exchange of a floating rate of interest for a fixed rate of interest payments and how you can use FRA in mitigating risks. (4 points) 3. The standard deviation of monthly changes in the spot price of live cattle is 1.2 cents per pound. The standard deviation of monthly changes in the futures
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(a) Statement of Problem. Ocean Carriers is evaluating a proposed three year lease of a ship. Currently‚ no ships in Ocean Carrier’s fleet meet the requirements of the customer. Since the new ship requires an investment of $39 million‚ Mary Linn‚ the Vice President of Finance for Ocean Carriers‚ needs to evaluate the proposal’s NPV and determine whether or not to accept the proposal by considering expected cash flows‚ tax implications‚ and future market conditions. (b) Statement
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Michael Machuca Mr. Pitz AP World History 4/22/2013 Changes and Continuities in the Commerce of the Indian Ocean From the time of 650 C.E. to 1750 C.E. the commerce in the Indian Ocean had many changes and continuities. During the great trading routes long lifetime‚ it had powerful effects on the religion‚ people‚ and most importantly‚ the goods; these included spices‚ silks‚ perfumes‚ oils‚ and textiles. Many different peoples including the Indians‚ Arabs‚ and Chinese dominated the vast
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Blue ocean strategy generally refers to the creation by a company of a new‚ uncontested market space that makes competitors irrelevant and that creates new consumer value often while decreasing costs. The following guidelines may be proposed to companies seeking to create blue oceans: 1. Identify the key features/ dimensions that currently define a product/ service.2. Identify a group of customers who only value a subset of these features. These customers may be currently using lower end alternatives
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Pacific Ocean are getting hit with a mysterious condition. This condition starts out as a white or black lesion on the sea star’s body. From there‚ it spreads all over the body‚ causing its arms to decay. In the worst cases‚ the entire sea star disintegrates completely. Jeff Marliare‚ a Vancouver Aquarium biologist‚ says “an arm will actually break off and crawl away. (Then) they turn into goo.” Sea stars living in aquariums aren’t safe from this affliction. Aquariums prone to pump in ocean water
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CHAPTER 18 The Atlantic System and Africa‚ 1550–1800 I0.Plantations in the West Indies A0.Colonization Before 1650 * 10. Spanish settlers introduced sugar-cane cultivation into the West Indies shortly after 1500 but did not do much else toward the further development of the islands. After 1600 the French and English developed colonies based on tobacco cultivation. * 20. Tobacco consumption became popular in England in the early 1600s. Tobacco production in the West Indies was stimulated
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5-30 (Assertions) In planning the audit of a client’s financial statements‚ an auditor identified the following issues that need audit attention. 1. The allowance for doubtful accounts is fairly presented in amount. 2. All accounts payable owed as of the balance sheet date are included in the financial statements. 3. All purchase returns recorded in the general ledger are valid. 4. There is a risk that purchases made in the last week of the month might be recorded in the
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Wiley Plus Wk 2 Ex & Prob ACC/291 August 6‚ 2012 Wiley Plus Wk. 2 Ex & Prob E8 – 3 Date | Account Titles and Explanation | Debit | Credit | 31 – Dec. | Bad Debts Expense Accounts receivable-Fell | 1‚400 | 1‚400 | | | | | 31 – Dec. | Bad Debts Expense (840‚000 – 30000)*1% Allowance for Doubtful accounts | 8‚100 | 8‚100 | | | | | 31 – Dec. | Bad Debts Expense Allowance for Doubtful Accounts (120‚000*10%)-2100 | 9‚900 | 9‚900 | | | | | 31 – Dec.
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Storms make trees take deeper roots. "But time is like the ocean‚ you can only hold a little in your hands." The quieter you become‚ the more you are able to hear. “Normal” isn’t an adjective you wish to hear after putting that much effort into making sure it was spectacular.” “People get mad when you treat them how they treat you.” Eliminate the unnecessary. Storms make trees take deeper roots. "But time is like the ocean‚ you can only hold a little in your hands." The quieter
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Ocean Waves A wave is a periodic disturbance in space and time‚ possibly transferring energy to or through a space-time region. Have you ever ridden a wave in the ocean? Ocean waves travel on the surface of the water. You can see them and you can feel them. As you swim through the water‚ you can even make your own waves. The winds cause waves on the surface of the ocean (and on lakes). The wind transfers some of its energy to the water‚ through friction between the air molecules and the water molecules
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