Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Why are most futures positions closed out through a reversing trade rather than held to delivery?
Answer: In forward markets, almost 90% of all contracts that are basically established result in the short making delivery to the long of the asset fundamental the contract. This is natural since the terms of forward contracts are tailor made among the long and short. By contrast, just about 1% of currency futures contracts result in delivery. When futures contracts are helpful for speculation and hedging, their standardized delivery dates make them not likely to correspond to the actual future dates while foreign exchange transactions will take place. So, they are usually closed out in a reversing trade. Actually, the commission that buyers and sellers pay to transact in the futures market is a single amount which covers the round-trip transactions of initiating and closing out the position.
Explain Gresham’s Law. Answer: Gresham’s law considers to the phenomenon that bad (abundant) money drives good (scarce) money out of circulation. This type of phenomenon was fre
State about Investment decision Decisions relating to investment in both current and capital assets. Finance manager has to evaluate different capital investment proposalsan
Q. What is Cash Flow Criteria? Cash Flow Criteria: - Cash flow criteria are on the basis of cash flows rather than accounting profit. Cash flow methods are separated into two s
What reasons do governments frequently give to justify the decision to not permit price to ration goods? (a) Price gouging is bad. (b) Income is unfairly distributed. (c) Some
Analysing performance through ratios Ratios are an effective way of analysing financial statements. A ratio is 2 figures compared to each other and can either be in absolute te
A company commissioned a valuation of its land and buildings for inclusion in its financial statements. The valuation document contained the following details:
The actual risk-free rate is 4%. Inflation is likely to be 3% this year and 4% during the next 2 years. We suppose that the maturity risk premium is zero. What is the yield on 2
What are the Market conditions of cost of capital Security may not be readily marketable when investor wants to sell; or even if a continuous demand for security does exist, p
Franchise (licensing) - Granting or licensing of the right to use systems, expertise,brandsknow how etc. to another organisation, generally in return for a profit share
When a company commits (implicitly or explicitly) to granting at-the-money options to employees in the future then we can view them as a forward start options. a) Explain the di
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd