Answer:
D. A Fed sale of bonds to brokers and banks.
Explanation:
The sale of bonds to banks and brokers is a contractionary open market policy. Its objective is to check inflation by slowing down the rate of economic growth. When the Fed offer bonds to the markets at a higher interests rate, banks will prefer to buy the bonds than lending out money to household and firms.
Producers rely on banks to fund their operations. If they cannot obtains loans for production and growth, their output decreases. A decrease in output results in reduced exports. Low production of US goods means a reduced supply to the international market. It means international buyers will be competing for fewer US products. As the markets compete for the few available products, they push the demand for the dollar up, causing it to appreciate in value.
The problem that Bob will most likely face in terms of
evaluation and feedback step in the decision making process is when Bob’s
gathered information may be neglected when the plan that he has done has been a
success or it has been a failure.
Answer: B. 1 DEF Jan 50 Call
Explanation:
The Options Clearing Corporation (OCC) acting under its mandate of being an issuer and guarantor for options and futures contracts can alter options prices but does not do so for prices based on normal dividends as they are more regular and their effects are already accounted for in the price of the call.
When a company calls a one-time special cash dividend, this is new to the market which would not have incorporated it into the price of the call. The OCC will then adjust the price to account for this.
In this case it will do so by subtracting the dividend from the call;
= 55 - 5
= $50
The customer will then have 1 DEF Jan 50 Call
.
Answer:
The amount to save now is = $862.03 (to 2 decimal places)
Explanation:
In order to solve this, we will compute the end-of-year amounts using the 5% increase each year. This is done as follows:
Year 1 ending = $200
Year 2:
Year 2 beginning price = $200
Note that 5% increase = 5/100 = 0.05
increase in year 2 = 5% of 200 = 0.05 × 200 = 10
Year 2 new price = 200 + 10 = $210
Year 3:
beginning price = $210
increase in year 3 = 0.05 × 210 = $10.5
Year 3 new price = 210 + 10.5 = $220.5
Year 4
beginning price = $220.5
interest in year 4 = 0.05 × 220.5 = 11.025
new price in year 4 = 220.5 + 11.025 = $231.525
Next to calculate the amount needed to pay for one travel ticket per year for the next four years, we will add the prices of the tickets each year as follows:
Total amounts needed = 200 +210 + 220.50 + 231.53 = $862.03
Answer:
1. 7.2
2. 9
Explanation:
take 72 and divide by number of years
72/x= ROI
