When a comparison is made between futures and forwards
contracts,it is said that futures are more liquid ,but forwards are
more flexible.Explain the meaning of the statement and comment on
how difference in contract liquidity and design flexibility might
influence an investors preferences in choosing one instrument over
the other.
a) Explain a foreign currency futures contract and outline the
differences between futures and forwards. b) The Chicago Mercantile
Exchange (CME) and the New York Board of Trade (NBOT) operate
futures markets in currencies in the following pairs US$/pounds and
US Dollar/Pound. The value standardize size of a sterling futures
contract is 6,500 pounds. Describe how a UK company that expects to
received US$800,000 in three months time can use a futures contract
to hedge transaction exposure if the following...
1. When choosing a business form, what are they key difference
between proprietorship, partnership and a corporation?
2. What are the seven (7) characteristics of a partnership?
3. What are the differences between a/an
a. Limited liability Partnership
b. Limited liability Corporation
c. S Corporation?
4. What factors are taken into consideration when choosing a
business form?
5. What are the three (3) methods used to allocate income or loss?
Explain each method.
6. What accounts are affected when recording...
How are forwards and/or futures used and what is an advantage
and disadvantage of their use from a company perspective. From an
investor perspective? Discuss the importance of Forwards and
Futures as they pertains to a MNC giving an example of its use. Do
you support their use and why? Try to provide a real example.
When we include an additional regressor into the regression,
what is the trade-off between bias and variance in regression
analysis? What is the difference between the variables of interest
and control variables? What is the meaning of ‘conditional mean
independence’ ?
What is the main difference between notes payable and bonds
payable?
What is the main difference between a bond and a share of
stock?
What does it mean to issue bonds at
Par?
Discount?
Premium?
What is the contract rate and the market rate for bonds?
How do you compute total bond interest expense when a bond is
sold at a discount? Explain your answer.
How do you compute bond interest expense when a bond is sold at
a premium?...
What is the main difference between numeric variable and
categorical variable; the main difference between ordinal variable
and nominal variable; the main difference between ratio variable
and interval variable?