FNCE 404 Exam Review – Fall2012 Prof. Eloisa Perez Q1. Micca Metals‚ Inc. is a specialty materials and metals company located in Detroit‚ Michigan. The company specializes in specific precious metals and materials which are used in a variety of pigment applications in many other industries including cosmetics‚ appliances‚ and a variety of high tinsel metal fabricating equipment. Micca just purchased a shipment of phosphates from Ghana for 10‚000‚000 cedis‚ payable in six months. Micca’s cost of
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Causes of Financial Crisis There were many antecedents of financial crises that led to the Global Economic Disruption. Many pundits consider Financial Crisis as the cyclic event that recurs after passage of certain interval in Economic Lifecycle‚ but they should consider it only wrongs by the side of human intellectuals. Institutions are made up of human beings or human resource. In order to cater with the rapid changing in the financial engineering in the overall Global Financial Market human resource
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Science 10. P 393 Investigation 13A Time (sec) Displacement (cm down) Velocity ( down) 0 0 0 0.1 0.6 = Df – Di = 0.6 – 0 = 0.6 = 0.2 1 = Df – Di = 1 – 0.6 = 0.4 = 0.3 3.3 = Df – Di = 3.3 – 1 = 2.3 = 0.4 5.9 = Df – Di = 5.9 – 3.3 = 2.6 = 0.5 7.4 = Df – Di = 7.4 – 5.9 = 1.5 = 0.6 8.7 = Df – Di = 8.7 – 7.4 = 1.3 = 0.7 10.1 = Df – Di = 10.1 – 8.7 = 1.4 = 0.8 11.4 = Df – Di = 11.4 – 10.1 = 1.3 = 0.9 12.9 = Df – Di = 12.9 – 11.4 = 1.5 = 1.0 11.8 = Df – Di = 11.8 – 12.9 = -1.1 = 1
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Linear Functions There are three different ways to write linear functions. They are slope-intercept‚ point-slope‚ and standard form. There are certain situations where it is better to use one way than another to solve a problem. It is important to understand and comprehend the mechanics of these three forms so that you know what form to use when solving a problem. The first form‚ point-slope‚ is written as y-y1=m(x-x1). M is the slope and x1 and y1 correspond to a point on the line. It’s good to
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Treasury and Risk Management Question 1. A trader enters into a one-year short forward contract to sell an asset for $60 when the spot price is $58. The spot price in one year proves to be $63. What is the trader’s gain or loss? Show a dollar amount and indicate whether it is a gain or loss. Answer: The trader sells the contract for $60 and buys at a spot price of $63. $60 - $63 = ($3). $3 loss Question 2. The price of a stock is $36 and the price of a three-month
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ANALYSIS OF FINANCIAL STATEMENT The company uses two statements for reporting its profit or loss and other comprehensive income. The following details is shown: STAFF COSTS Staff costs increased by approximately HK$108.5 million‚ or approximately 37.8% from the year ended 31 March 2013 to 2014. The salary levels of employees in the food and catering sector has been generally rising in recent years. The increase was attributable to higher salaries and new staff recruited for the newly opened
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Homework: Foreign Currency Transactions and Hedging - Hedging Currency Risk at AIFS Case 1. What gives rise to the currency exposure at AIFS. Currency exposure or currency risk is the type of risk that an individual or a company faces due to the fluctuation in price of one currency against another. For AIFS –a student exchange organization that offers education and travel programs all over the world- the fact that they do business domestically and internationally gives rise to several factors that
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Objectives: To learn about motion through studying and matching graphs of position vs. time and velocity vs. time; to develop an understanding of the concepts of kinematics. Predict‚ sketch‚ and test motion graphs to better understand motion. Equipment: Computer Vernier computer interface Logger Pro Vernier Motion Detector Meter stick Masking tape Preliminary Questions: 1a. The pink line shows the position of an object at rest with respect to
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4. A treasurer of an American company in March realizes that it needs to raise $25 million zero-coupon bond in August for a period of 6 months. Zero-coupon bond of similar quality is currently yielding 4%‚ a cost‚ which the treasurer finds acceptabl(e) The treasurer is of the view that interest rate will rise before the company will issue the debt‚ hence will increase the cost of debt. So to hedge the interest rate risk the treasurer decided to hedge the risk using September Eurodollar futures contract
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Problem 20-6 on Call Options Based on Chapter 20 (Excel file included) You own a call option on Intuit stock with a strike price of $40. The option will expire in exactly 3 months’ time. a) If the stock is trading at $55 in 3 months‚ what will be the payoff of the call? b) If the stock is trading at $35 in 3 months‚ what will be the payoff of the call? c) Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration. Short call: value at expiration
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