NATIONAL SENIOR CERTIFICATE GRADE 12 MATHEMATICAL LITERACY P1 NOVEMBER 2011 MARKS: 150 TIME: 3 hours This question paper consists of 15 pages and 1 annexure. Copyright reserved Please turn over Mathematical Literacy/P1 2 NSC DBE/November 2011 INSTRUCTIONS AND INFORMATION 1. 2. This question paper consists of SIX questions. Answer ALL the questions. Answer QUESTION 6.1.3 and QUESTION 6.1.4 on the attached ANNEXURE. Write your centre number and examination number in the
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that the risk-free interest rate is 10% per annum with continuous compounding and that the dividend yield on a stock index is 4% per annum. The index is standing at 400‚ and the futures price for a contract deliverable in four months is 405. What arbitrage opportunities does this create? Problem 5.14. The two-month interest rates in Switzerland and the United States are 2% and 5% per annum‚ respectively‚ with continuous compounding. The spot price of the Swiss franc is $0.8000.
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Futures contract In finance‚ a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today (the futures price or the strike price) but with delivery occurring at a specified future date‚ the delivery date. The contracts are traded on a futures exchange. The party agreeing to buy the underlying asset in the future‚ the "buyer" of the contract‚ is said to be "long"‚ and the party agreeing to sell the asset
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holding the highest pricings compared to other continents. The second issue concerns global market reactions to these unusually higher values of silver in China which lead to the arbitrage trade‚ which is the value of a product being unusually higher than other areas which have a cheaper value for the product. But this arbitrage issue is crucial and nontrivial when placed in the context of monetary and trade history at the global level. (#2 p.396) There
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populations II. Triangular Trade Triangular : Trade between the Americas‚ Europe and Arica Plantations : large farms that produced crops for sale (also known as “cash crops”) A. Africans Enslaved Plantations required huge numbers of workers who labored long hours The first enslaved Africans arrived I the Americas in 1517 Europeans constructed a cruel system to supply slaves to the Americas Slaves were regarded as property. B. Middle passage Part of triangular trade Africans
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strategy brought the bank to its ultimate collapse in Feb 1994. Throughout his tenure from 1992 to early 1995‚ the star-trader-turnedrogue‚ Nick Leeson‚ was consistently misleading the senior management to believe that his entire strategy was based on arbitrage between Simex and Osaka stock exchanges. It turned out he was taking leveraged bets on the Japanese Index‚ Nikkei 225. A single event‚ Kobe earthquake on January 1995‚ a black swan event of a kind‚ triggered the index to fall by 1‚000 points‚ the
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Executive Summary Globalisation can be viewed at the country‚ industry‚ or firm level‚ according to Anthony Giddens‚ a sociologist‚ globalisation is defined as “the worldwide interconnection at the cultural‚ political and economic level resulting from the elimination of communication and trade barriers” Introduction Every organisation dreams to be multinational enterprises (MNEs)‚ and if it’s not the global environment is forcing companies regardless of their location or primary market base
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of irrationally pessimistic investors immediately. Arbitrage The last assumption is that investors will scramble for any arbitrage chance which means “buy low sell high”. When a piece of information is announced‚ all investors will adjust the expected stock price at the same level and immediately buy the “underpriced” stock or sell the “overpriced stock” to maximize their earnings. Although there are some irrational investors‚ the arbitrage mechanism helps driving out any mispricing caused by
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BNU5013 – International Management Strategies Post-Module Assignment for Prof. Minyuan Zhao The topic for our team presentation was the expansion of Global Franchise Architects (GFA) into Kenya. The group selected this company as we had just completed a communication strategy for them on how to expand in India‚ and one of our colleagues who is from Kenya thought that it might be a viable option for GFA to expand into Kenya. This paper will attempt not to repeat any facts stated already
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value of a put option at expiration is Max[E – S‚0]. By definition‚ the intrinsic value of an option is its value at expiration‚ so Max[E – S‚0] is the intrinsic value of a put option. 5. The call is selling for less than its intrinsic value; an arbitrage opportunity exists. Buy the call for $10‚ exercise the call by paying $35 in return for a share of stock‚ and sell the stock for $50. You’ve made a riskless $5 profit. 6. The prices of both the call and the put option should increase. The higher
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