decide on the best strategy that would maximize the benefits of the merger by leveraging synergies against the potential costs and risks. Following the recommendation of the IT Governance Institute‚ newly merged company should establish effective duopoly IT governance with special focus on strategic alignment. Executive and department level steering committees consisting of members of both companies should be granted decision rights with respect to strategic direction‚ resource allocation‚ and prioritization
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|7‚385 | Sue is a pessimistic investor‚ so choose the alternative (including doing saving instead of investing) that will reflect the maximum of the minimum payoffs that is the Corporate Bond of 15‚273. a: Profit in Favorable Market: Future Value of corporate bond interests paid on 13% coupon rate annual basis in 5 years=25‚273. Profit in Unfavorable Market = (minimum principle + interests) – initial investment=
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only 300 rooms instead of 400. d. adjust short run marginal cost the long run marginal cost. 1. Consider the following payoff table. In this table‚ Player 1’s payoffs are written FIRST in each pair. Player 2 Strategy High Price Low Price Player 1 High Price (10‚ 10) (5‚-5) Low Price (-5‚ 5) (0‚ 0) 2. Which of the following is Nash equilibirum payoffs in a one-shot game? a. (0‚ 0) b. (5‚ -5) c. (-5‚ 5) d. (10‚ 10) QUESTION 21 1. You are the manager
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insurance and the risks involved if not. Introduction Before presenting how game theory can help consumers make a decision on whether or not buy life insurance‚ it is important to understand its framework and some its key elements particularly when payoff depends on the actions taken by another. Game theory is a method of analyzing situations and studying strategic interactions among game participants‚ or players‚ where they choose different actions in an attempt to maximize their returns. It studies
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CHAPTER 1 INTRODUCTION Derivatives Securities A derivative security is a security whose value depends on the value of together more basic underlying variable. These are also known as contingent claims. Derivatives securities have been very successful in innovation in capital markets. The emergence of the market for derivative products most notably forwards‚ futures and options can be traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties
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Astln Bulletin 11 (198o) 1-16 A GAME T H E O R E T I C LOOK AT L I F E I N S U R A N C E UNDERWRITING* JEAN LEMAIRE Universit6 Libre de Bruxelles Tim decision problem o[ acceptance or rejection of life insurance proposals is formulated as a ~vo-person non cooperattve game between the insurer and the set of the proposers Using the mmtmax criterion or the Bayes criterion‚ ~t ~s shown how the value and the optunal stxateg~es can be computed‚ and how an optimal s e t of medina!‚ mformatmns can be
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long position in the option depends on the stock price at maturity of the option. Ignoring the time value of money‚ the holder of the option will make a profit if the stock price at maturity of the option is greater than $105. This is because the payoff to the holder of the option is‚ in these circumstances‚ greater than the $5 paid for the option. The option will be exercised if the stock price at maturity is greater than $100. Note that if the stock price is between $100 and $105 the option is
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As 2016 is a presidential election year‚ many people routinely are exposed to the major party candidates. This election season is historic‚ because never have the two major party candidates been so disliked. Unfortunately‚ most Americans will not understand that they can vote for someone other than a Democrat or Republican. The Libertarian Party is the third largest and fastest growing political party in the United States. Due to the disdain of the major parties by large number of the electorate
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Chapter 1 2) E-business is limited to electronic activity conducted over the Internet. – False 3) One of the significant changes in IT governance is the shift to a centralized IS executive decision making process. – True 6) Outsourcing IT services is always a long-term commitment. – False 7) Intellectual capital is a synonym for knowledge. – True 9) Data management has changed over the years to include graphics‚ animation‚ and video. – True 11) Knowledge-based activities are designed
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1. _____ is the rate of change of delta with respect to the price of the underlying asset. a. Gamma b. Theta c. Rho 2. The short term risk-free rate usually used by derivatives traders is b. The LIBOR rate 3. Duration of a ten-year 6% coupon bond with a face value of $100 is a. Less than 10 years. 4. Which of the following are always positively related to the price of a European call option on a stock? c. The volatility 5. When we talked about Vega hedging‚ if a portfolio has
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