If a lender agrees to lend a firm $1,000,000 after six months at the going rate, that individual can hedge against the loss from a decline in interest rates by
A. buying a financial futures contract.
B. selling a financial futures contract.
C. taking a short position.
D. making the loan now.
Answer: A
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Vinson Manufacturing requires all capital investment projects to have a payback period of 5 years or less. Vinson is currently considering an equipment purchase that has an initial cost of $90,000. The equipment is expected to have a ten year life and a salvage value of $5,000. Assuming cash flows are equal, what does the annual cash flow generated by the equipment need to be in order to meet the
payback period requirements? A) $18,000 B) $19,000 C) $17,000 D) $9,000
Only individual investors participate in public offerings, while institutional investors participate in
private placements. Indicate whether the statement is true or false
Ames, an agent for Baker Antiques, had the authority to purchase early 20th-century American furniture costing a maximum of $1,500 per piece. Ames bought a 19th-century French desk for $3,000 from Carter. Baker was furious when she saw the desk, and she
fired Ames. Nevertheless, she put the desk on display in the shop with a $5,000 price tag. When the best offer she got for the desk was $2,500, Baker returned the desk to Carter. Baker told Carter that Ames had exceeded his authority in purchasing the desk, and she demanded that Carter refund the $3,000 that Ames had paid for the desk. Will Carter have to do so?
Which of the following commands can be used to modify an index?
a. ALTER INDEX...MODIFY b. ALTER INDEX...CHANGE c. ALTER TABLE...INDEX d. none of the above