FINS 3635 - Options‚ Futures‚ and Risk Management Techniques: Mock Final May 28‚ 2012 1) Consider a firm with two classes of zero-coupon debt: senior debt and junior debt. Suppose that the firm’s debt securities both mature at time T1 and the senior ranking debt has a face value of X1 and the junior ranking debt has a face value of X2 . The claims of the senior debt holders are paid first‚ before the claims of the junior debt holders‚ who in turn are paid out their claims before the equity holders
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TU sponsored by a political party. After two formal requests sent by the TU to the management‚ demanding a discussion related to employment issues with the senior management and since there was no response from the management the TU had to resort a strike action even after extending the 14 days provided. The Management in return sent letters to the strikers that they would be considered as vacated of post if the workers don’t report to work within 7days from the date lettered. The strikers being absent
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unrest increased during this time period‚ which is very obvious by the increase of labor strikes. There was a strike by the United States Steel Corporation workers in 1919. They were annoyed with their seven 12 hour workdays a week. The leader of the American Federation of Labor joined the International Workers of the World (which was a communist group dedicated to freeing the bonds of workers) after the strike. A committee published a report that illustrated the horrible working conditions‚ which
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following companies ?] Strikes 29 64% Lock Out 3 7% Sales/Offers 7 16% Services 6 13% Honda [Do you recall any news about the following companies ?] Strikes 11 24% Lock Out 4 9% Sales/Offers 18 40% Services 12 27% M&M [Do you recall any news about the following companies ?] Strikes 12 27% Lock Out 5 11% Sales/Offers 17 38% Services 11 24% Bajaj Auto Ltd [Do you recall any news about the following companies ?] Strikes 10 22% Lock Out 12 27%
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then found an alternative to show their dissatisfaction which is strike. Strike can result in loss of productivity‚ angry customers‚ financial losses‚ injury‚ and damage to property as well as a soured employee-employers relation. It usually occurs when employers do not take into consideration employees concerns and demands‚ when they do not react to the issues that the labour force is facing. Even though employees are allowed to strike‚ there are procedures in place that protect them from not losing
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What is Strike? A strike is when workers refuse to work until their working conditions have improved. Although strikes are done by many workers‚ there are some workers that shouldn’t have the right to strike. Federal government workers (public service workers)‚ should not have the right to strike. For‚ they are very much important in the community. And their absence can lead to damages being done. Public Service Workers include Police Officers‚ Firefighters‚ and teachers etc. Can
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states‚ that in” October 2007‚ the Writers Guild asked its members for strike approval‚ and the producers were maintaining that the guild was just trying to delay negotiations until the current contract expired at the end of October”. Both the Writers Guild and the producers knew that timing for these negotiations is crucial. Television series are in full production during the fall and spring. If the writers were to go on strike now would have a bigger impact than they would have if they waited until
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month LIBOR rate one month ago was 11.8% per annum. All rates are compounded quarterly‚ what is the value of the swap? 4. A four month European call option on a non-dividend paying stock is currently selling for $5. The stock price is $64‚ the strike price is $60 and a dividend of $0.80 is expected in one month. The risk free interest rate is 12% per annum for all maturities. What opportunities are there for an arbitrageur? 5. A Tk 100 million interest rate swap has a remaining life of 10
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8.3.)An investor sells a European call option with strike price of K and maturity T and buys a put with the same strike price and maturity. Describe the investor’s position. The payoff to the investor is - max (ST - K ‚ 0) + max(K - ST‚ 0) This is K- ST in all circumstances. The investor’s position is the same as a short position in a forward contract with delivery price K. 8 .4.)Explain why brokers require margins when clients write options but not when they buy options? When an investor
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history and working conditions around the world. The three main labor organizations present in the United States at the time sought an eight-hour work day and called for several strikes to achieve this goal. Of the three labor organizations‚ the Knight of Labor was the largest and most conservative; they opposed the strike on May 1. Rallies were held nationwide on this scheduled day. In some cities‚ blacks and whites marched side by side‚ which in 1886‚ was quite a sight to behold. Chicago’s was by
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