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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The Soviet Union formally collapsed on December 26th‚ 1991. The dissolution of the world’s first and largest Communist state also marked the end of the Cold War. Mikhail Gorbachev (in office from May 25th‚ 1989- December 25th‚ 1991) was the leader of the Soviet Union mainly credited in driving the Soviet Union into near disaster. This collapse has been debated by many historians‚ whether it was inevitable or it was pressured into collapse. I focused my research on the causes of the collapse
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Effective Strategies Effective Strategies “Some unions feel that the organization does not compensate its members fairly‚ or that the organizational working conditions are less than desirable. Conversely‚ some employers feel that unions interfere with management decisions and impede on a positive relationship between managers and employees. There may be some truth to both perceptions” (Ashford University). I will provide a “…detailed explanation of the effective strategies
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Throughout this assignment I will be discussing the importance of the skill of Negotiation. Negotiation is used frequently in everyday situations and I am going to use the example of using negotiation in groups‚ which I have experienced firsthand‚ for the given assignment. Negotiation is very important for people and individuals to work out disputes and everyday situations. ‘Negotiation is not only common but also essential to living an effective and satisfying life. We all need things – resources
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ASPECTS OF CONTRACT AND NEGLIGENCE OF BUSINESS Task: 1.1: Explain the importance of the essential elements required for the information of a valid contract? Offer A valid offer identifies the bargained-for exchange between the parties and creates a power of acceptance in the party to whom the offer is made. The communication by one party known as the offeror to the another party called the offeree b) Acceptance To constitute a contract‚ there must be an acceptance of the offer
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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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Post-Negotiation and Case Analysis for ABC/Local 190 Group 9 Xiangnan Liu‚ Jing Zhang‚ Miao Hou‚ Qun Xie‚ Yiping Cao 03/11/2013 1.1 Parties involved in the Hormel negotiations. In the Hormel negotiations‚ there are four main parties‚ Hormel Company‚ union Local P-9‚ United Food and Commercial Workers international（UFCW）and Local P-10er‚ which stands for dissident group of Local P-9. 1.2 Primary goals/interests of each party. The primary goal of Hormel Company was to keep the
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Ways that Students Prepare for Exams In general‚ exams play a role that testing students whether they acquire knowledge. Teachers know problems that students didn’t master from exam‚ and students also can find out their disadvantages from exams. In order to access more knowledge and get higher scores‚ students have many ways to prepare for exams‚ including studying with friends‚ asking teachers for help‚ and reading books for research. The first type is studying with friends‚ it means students
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The mutual suspicion and dislike between the Soviet Union and the United States of America was the most important factor in the Cold War because it created distrust and continuous skepticism between the two world powers and their contrasting beliefs. For instance‚ when the Allies planned to beat the Axis in World War 2‚ the Soviet Union fought extremely hard along the Eastern Front‚ while the US and Great Britain were supposed to be landing in France‚ during the D-Day attack. But‚ this attack didn’t
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Business Law Assignment; Mistake in contract law‚ is a factual misunderstanding that may lead to a failure of a meeting of the minds. Unilateral mistake is mean that is only one party is mistaken‚ but the other party knows‚ or ought reasonably to be aware of the mistake. Contract may be void or voidable. Void is a contract that is no legal effect. While‚ voidable is an agreement that may be affirmed or rejected at the option of one of the party. The reason why Lord Denning took the view that these
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