subject
Business, 11.04.2020 00:35 kendall984

Uppose that in order to hedge interest rate risk on your borrowing, you enter into an FRA that will guarantee a 6% effective annual interest rate for 1 year on $500,000. On the date you borrow the $500,000, the actual interest rate is 5%. Determine the dollar settlement of the FRA assuming

(a) Settlement occurs on the date the loan is initiated.
(b) Settlement occurs on the date the loan is repaid

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 19:20
Sanibel autos inc. merged with its competitor vroom autos inc. this allowed sanibel autos to use its technological competencies along with vroom autos' marketing capabilities to capture a larger market share than what the two entities individually held. what type of integration does this scenario best illustrate? a. vertical b. technological c. horizontal d. perfect
Answers: 2
question
Business, 22.06.2019 19:40
An increase in the market price of men's haircuts, from $16 per haircut to $26 per haircut, initially causes a local barbershop to have its employees work overtime to increase the number of daily haircuts provided from 20 to 25. when the $26 market price remains unchanged for several weeks and all other things remain equal as well, the barbershop hires additional employees and provides 40 haircuts per day. what is the short-run price elasticity of supply? nothing (your answer should have two decimal places.) what is the long-run price elasticity of supply? nothing (your answer should have two decimal places.)
Answers: 1
question
Business, 22.06.2019 19:50
Which of the following would create the most money? the initial deposit is $6,500 and the required reserve ratio is 20 percent. the initial deposit is $3,000 and the required reserve ratio is 10 percent. the initial deposit is $7,500 and the required reserve ratio is 25 percent. the initial deposit is $4,500 and the required reserve ratio is 15 percent.
Answers: 1
question
Business, 22.06.2019 21:40
Which of the following distribution systems offers speed and reliability when emergency supplies are needed overseas? a. railroadsb. airfreightc. truckingd. pipelinese. waterways
Answers: 2
You know the right answer?
Uppose that in order to hedge interest rate risk on your borrowing, you enter into an FRA that will...
Questions
question
Mathematics, 27.10.2020 20:30
question
Computers and Technology, 27.10.2020 20:30
question
Mathematics, 27.10.2020 20:30
question
English, 27.10.2020 20:30
Questions on the website: 13722367