Give a detailed explanation of whether the following statements are true or false. • The buyer of an option has an obligation to purchase the underlying asset in the case of a call, or sell in the case of a put, which the seller of an option has the right to deliver in the case of a call, or take delivery in the case of a put. • Call-put parity implies that currency puts and calls written with exercise prices at the forward rate will have different values because, if the foreign interest rate exceeds the domestic rate, the forward rate is at a discount; therefore, the exchange rate is expected to depreciate, making the put more valuable

Ahmed wants to Suy a used refrigerator. His reservation price is 300 AED. Saeed would not accept less than 250 AED for his old refrigerator. Explain whether Saeed would complete the sale using the concept of reservation price.

Tha back end of a payment system comprises I. Clearing and settlement. O II. Settlement and instrument of payment. O II. Clearing, settlement, and access point. O IV. Clearing and instrument of payment. Ov. Clearing, settlement, and instrument of payment. O VI. Access point, and user interface.

nagement 2 O Points: 0 of 2 Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,300 flashing lights per year and has the capability of producing 95 per day. Setting up the light production costs $51. The cost of each light is $1.00. The holding cost is $0.05 per light per year. a) What is the optimal size of the production run? 11,200 units (round your response to the nearest whole number). F1 - Calculator Ask my instructor 2 W S -89 7 X H command # m 3 E D 80 F3 C $ 4 R 999 F4 F % R LO 5 V 24 FS T G Part 1 of 4 ^ 6 B MacBook Pro Fo Y H & 7 N 44 F7 U * J 8 DII FO D M ( 9 – K DD F9 O v. < H I ) .O L command 4 F10 P ^. z - : ... Clear all ch S F11 option { [ ? + 1 = 11 I d F12 [ Final check } ] C delete 1 1 return shift

5. Suppose you are expecting your fourth child in six months and you need a bigger car. You have your eye on a used three-year-old minivan that currently costs approximately $10,000. You are concerned about the pricing and availability of this specific car in six months' time, but you won't have enough money to purchase the car until six months from today. a. How could you advertise in the newspaper for a forward contract with a counterparty that would eliminate your risk? b. Who would be willing to take the short position on your forward contract? (Who is the likely counterparty?)

A retail store dealing in computer hardware imports an enterprise model solid-state drive (SSD) at a fixed price of $1,100 per unit from the sole distributer of the SSD. On January 1, 2015, the store received an offer of 12.5% discount on orders of 300 or more units. Provided further that the estimated sales for the year are 500 units, the cost incurred per order is $950 and the average holding cost per unit per annum is estimated to be $110 per unit. The full price is likely to remain $1,100 during the year. Please ignore opening and closing inventories, safety stock etc.   What is the Maximum Inventory Level under Discount Order Qty? What is the Annual Holding Cost under Discount Order Qty?

Please do not give solution in image formate thanku. Demand for phones at Amazon is 5,000 per month. The holding cost as Amazon is 25 percent and the company incurs a fixed cost of $500 for each order placed. the supplier offers a marginal unit quantity discount with a price of $200 per phone for the first 10,000 phones in an order, a price of $195 for the next 10,000 phones in the order, an a price of $190 for the quantity above 20,000 in the order. How many phones should amazon order per replenishment?? (Please include formulas used)

1.Explain how contracts help to relocate, share and spread risk. 2.How can option contracts to be used for risk management? Explain the meaning of exercise price and option fee.

You are the buyer for a major U.S. health care company. As buyer, your job is to procure and buy parts for the production of X-Ray machines. The buyer from your sister plant in Paris, France has contacted you to supply them with 5 center sections, (a major component used in the X-Ray tube), because they will run out of these parts within 3 days. The center section is procured from a single source supplier in England, weighs approximately 40 pounds, is made of lead and has a 6-week lead time, (the time your supplier requires to manufacture the center section). Based on this criterion, answer the following questions: What mode of transportation is appropriate for shipping this part to Paris, France? What carrier will you use? Which carrier offers the best value?

Your options for shipping $96,970 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are (1) use a ship that will take 32 days at a cost of $3,370, or (2) truck the parts to Los Angeles and then ship at a total cost of $5,180. The second option will take only 20 days. You are paid via a letter of credit the day the parts arrive. Your holding cost is estimated at 30% of the value per year. If you have a third option and it costs only $4,440 and also takes 20 days, what is your most economical plan? The daily holding cost of Alternative 1 is $ 79.70 . (Enter your response rounded to two decimal places.) The daily cost of faster shipping with Alternative 2 is $ 150.83. (Enter your response rounded to two decimal places.) The daily cost of faster shipping with Alternative 3 is $ (Enter your response rounded to two decimal places.)