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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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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Contract is an agreement between two or more competent parties in which an offer is made and accepted‚ and each party benefits. No contract can come into being unless the following features exist: an actual offer‚ an acceptance‚ consideration (this means that each party will contribute something of a material value to the bargain) and an intention to create legal relations. The agreement can be formal‚ informal‚ written‚ or just plain understood. (a) For a contract to exist the offer must be made
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common law‚ a contract is a legally binding agreement between two or more parties that sets an exchange of promises of what each party will or will not do".(Elliott‚2011‚p.13) The contract can be unilateral and bilateral. if the oferee can accept simply by promising to perform‚ the contract is bilateral. Bilateral contract is a "promise for a promise"‚ and in order to be formed‚ is not need for consideration to be made at the time when the promises are exchanged . In a unilateral contract‚one party
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The case scenario starts off by stating that two employees of the hospital engaged in an exclusive contract. Since Ortiz agreement was to provide services to individuals in rural communities it ended up lowering the fees for the anesthesiologist so he decided to renegotiate his contract with the hospital which breached his original contract between the two of them causing the anesthetist services with the hospital. In turn leading to a lawsuit filed sharing that there was a violation made regarding
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critically analyse the nature of the psychological contract within the workplace and use 2-3 other themes and topics from the module to demonstrate the links between different concepts and issues. This essay intends to examine the psychological contract and its use at Delcam Plc. It is also going to look in depth at the way in which Delcam approaches the work-life balance‚ the relationship between managing the work-life balance and the psychological contract and finally the outcomes of satisfying the work-life
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Why do they call these contracts derivatives? Where is the optionality in these contracts? Weather derivatives structures commonly used are: i) cap - a call option; ii) Floor - a put option; iii) Collar - a put and a call option‚ usually with little or no premium; iv) Swap - a derivative with a profit and loss profile of a futures contract v) Digital option - an option that pays either a predetermined amount if acertain temperature or degree day level is reached‚ or nothing at all in other
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Sony Play Station Security Breach It is almost impossible to find the top reasons why most security breaches happen on a secure network compromising hundreds to thousands of users’ personal information. To protect a network and thoroughly secure confidential information‚ one has to examine the top vulnerabilities and think outside of the normal box to protect it. When a security breach happens‚ there is usually a pretty simple reason why it has happened. I will discuss one of the highly publicized
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Elements of a Contract Bus 670 Legal Environment Abstract In order for a contract to be valid‚ it must meet certain standards. Contracts can be formed by two parties for multiple reasons‚ but must hold up to the same standards in court to be valid. The first element of the contract is the offer. The offer is very important because it is where the contract initializes‚ and is presented to the offeree by the offeror (Mallor et al.‚ 2010‚ p. 307). The second element is acceptance. In this
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it possible for one standard form of construction contract to meet the need of every project? Discuss by reference to at least two forms in common use in industry. | 2 | 1.0 | What is a Construction Contract? | 2 | 1.1 | Why use a standard form of contract? | 3 | 2.0 | Different forms of contract | 3 | | 2.1 PWD (Public Works Department) FORM OF AGREEMENT | 4 | | 2.2 FIDIC | 4 | 3.0 | Main differences between both forms of contract | 6 | | 3.1 Payments | 7 | | 3.2 Variation
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