Average daily VAR at T bank has increased from 20.5 to 21.4 , where as at N bank it has reduced from 12.6 to 11.3.Therefore, trading activities are more risky for T banks then N banks.
Average daily VAR at T bank has increased from 20.5 to 21.4 , where as at N bank it has reduced from 12.6 to 11.3.Therefore, trading activities are more risky for T banks then N banks.
Agency cost is the cost of conflict between the shareholders and management. As in option B, as there is high risk in the project shareholders wants that the management not do this project but management wants to take that project because if project goes successful, management will receive benefit fRead more
Agency cost is the cost of conflict between the shareholders and management.
As in option B, as there is high risk in the project shareholders wants that the management not do this project but management wants to take that project because if project goes successful, management will receive benefit from the stock option.
value of forward contract - F = s(1+r)^t + Cost - benefit So, As underlying rises i.e S, value of forward increases. Therefore, answer is option B As time i.e t falls, Value of forward falls.
value of forward contract –
F = s(1+r)^t + Cost – benefit
So, As underlying rises i.e S, value of forward increases. Therefore, answer is option B
Analysis of financial institution
Average daily VAR at T bank has increased from 20.5 to 21.4 , where as at N bank it has reduced from 12.6 to 11.3.Therefore, trading activities are more risky for T banks then N banks.
Average daily VAR at T bank has increased from 20.5 to 21.4 , where as at N bank it has reduced from 12.6 to 11.3.Therefore, trading activities are more risky for T banks then N banks.
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No, option A.
No, option A.
See lessprobability distribution
Yes, Answer is option C
Yes, Answer is option C
See lessEconomics
Yes
Yes
See lessPortfolio management
Yes
Yes
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So, which option is the correct answer?
So, which option is the correct answer?
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Are we allowed to carry lunch for the break or not?
Are we allowed to carry lunch for the break or not?
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Agency cost is the cost of conflict between the shareholders and management. As in option B, as there is high risk in the project shareholders wants that the management not do this project but management wants to take that project because if project goes successful, management will receive benefit fRead more
Agency cost is the cost of conflict between the shareholders and management.
See lessAs in option B, as there is high risk in the project shareholders wants that the management not do this project but management wants to take that project because if project goes successful, management will receive benefit from the stock option.
Explain
value of forward contract - F = s(1+r)^t + Cost - benefit So, As underlying rises i.e S, value of forward increases. Therefore, answer is option B As time i.e t falls, Value of forward falls.
value of forward contract –
F = s(1+r)^t + Cost – benefit
So, As underlying rises i.e S, value of forward increases. Therefore, answer is option B
As time i.e t falls, Value of forward falls.
Fixed Income
Yes, Answer is option A , please explain the reason.
Yes, Answer is option A , please explain the reason.
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