Inventory is sometimes thought of as a needed evil
What are the reasons that Inventory is sometimes thought of as a needed evil.
Expert
Inventory ties up funds and these funds are not earning an explicit return. Some amount of inventory is constantly needed as companies try to hold the lowest acceptable amount.
Presently, the spot exchange rate is $1.50/£ and the three-month forward exchange rate is $1.52/£. The interest rate of three month is equal to 8.0% per annum in the U.S. & 5.8% per annum in the U.K. One can borrow as much as $1,500,000 o
Explain the term forward volatility.
Discuss the fundamental motivations for a counterparty to enter in a currency swap. One fundamental reason for a counterparty to enter in a currency swap is to exploit the comparative benefit of the other in gaining debt financing at a lower int
An optimal capital structure exists, explain the reasons. Why very small amount of debt is as undesirable as is very big amount debt?
How is absolute risk aversion function defined?
Which is associated to Sharpe Ratio?
What is Charmin hedge position?
What is implied volatility? Answer: Implied volatility is number into the Black–Scholes formula which makes a theoretical price equal a market price.
How does the theory of comparative advantage associate to the currency swap market?Name recognition is very important in the international bond market. Without it, even a creditworthy corporation will determine itself paying higher interest rat
What are the pros and cons of commercial paper relative to bank loans for a company seeking short-term financing?
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