MiniCase 2 Blades‚ Inc. Chap 5 1. If Blades uses call options to hedge its yen payables‚ should it use the call option with the exercise price of $0.00756 or the call option with the exercise price of $0.00792? Describe the tradeoff. 2. Should Blades allow its yen position to be unhedged? Describe the tradeoff. Chap 6 1. Did the intervention effort by the Thai government constitute direct or indirect intervention? Explain. 2. Did the intervention by the
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Ethical Options 2 Moira is a college graduate that has been an administrator assistant for four months. Her fellow employees are stealing from the company‚ coming/ going as they please and in some instances they are intoxicated during work. She has come forward to her department supervisor about the situation and he has done nothing. She is in a very uncomfortable situation and is ready to give up and join the rest of the unfaithful employees. When dealing with morality options‚ you always
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Option Valuation Chapter 21 Intrinsic and Time Value intrinsic value of in-the-money options = the payoff that could be obtained from the immediate exercise of the option for a call option: stock price – exercise price for a put option: exercise price – stock price the intrinsic value for out-the-money or at-themoney options is equal to 0 time value of an option = difference between actual call price and intrinsic value as time approaches expiration date‚ time value goes to zero 21-2
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contract‚ the derivatives are settled at a future date. Role of Financial Derivatives. We can classify financial derivatives based on different parameters. The most common are: 1. Derivatives according to the type of contract involved: a. Options. b. Forwards. c. Contracts for difference. d. SWAPS. 2.
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Practice Questions-“Real Options” Some questions may require you to use financial calculator or Excel. (In the final exam‚ for students without financial calculator‚ writing down the formula will be enough. However‚ those formulas must be correct to get full credit. Therefore‚ it is a good practice to check whether you are correct by using Excel for these practice questions) 1. How are real options different from financial options? 2. Consider the following project data: (1) A
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The trade of marijuana represents a loss of income of billions of dollars in taxes for both the states and the federal government. Thus‚ some people are advocating for the legalization of the use of marijuana especially in this period of crisis. This legalization would go against established morals and cultural beliefs that are ingrained in the American society. Besides‚ this subject also brings back a recurrent debate on whether it is the federal government or the state that has the right under
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History of Marijuana Cannabis is indigneous to Central and South Asia Evidence of the inhalation of cannabis smoke can be found in the 3rd millennium BCE‚ as indicated by charred cannabis seeds found in a ritual brazier at an ancient burial site in present day Romania. In 2003‚ a leather basket filled with cannabis leaf fragments and seeds was found next to a 2‚500- to 2‚800-year-old mummified shaman in the northwestern Xinjiang Uygur Autonomous Region of China. Cannabis is also known to have been
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How Does Marijuana Affect a User’s Life? Research shows marijuana may cause problems in daily life or make a person’s existing problems worse. Heavy marijuana users generally report lower life satisfaction‚ poorer mental and physical health‚ more relationship problems‚ and less academic and career success compared to non-marijuana-using peers. For example‚ marijuana use is associated with a higher likelihood of dropping out of school. Several studies also associate workers’ marijuana smoking with
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FAILURE IS NOT AN OPTION FAILURE IS NOT AN OPTION - Gene Kranz‟s leadership in movie < Apollo 13> INTRODUCTION Apollo 13‚ the 1995 motion picture directed by Ron Howard‚ is the true story of Jim Lovell‚ Fred Haise‚ and Jack Swigert‚ a team of astronauts reassigned to a space flight with diminished preparation time. Apollo 13 Mission in 1970 was planning to land on the moon as a routine‚ but after astronauts found oxygen tank‟s explosion and leaking‚ this routine mission to the moon suddenly
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Marijuana Should Not be Considered As a Lethal Drug In out society drugs are considered to be addictive and lethal. People tend to abuse drugs regardless of their side effects. In many cases government agencies regulate their use. Also there are drugs that are illegal to use‚ produce and sale. One of those illegal drugs is marijuana. For thousands of years‚ marijuana has been used to treat a wide variety of sickness. It became illegal in 1937 under The Marijuana Stamp Tax Act. This act prohibits
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