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September 12, 2023

A US Based Corporation

A US Based Corporation A US-based corporation has decided to make an investment in Sweden, for which it will require a sum of 100 million Swedish kronor (SEK) in three-months’ time. The company wishes to hedge changes in the US dollar (USD)-SEK exchange rate using forward contracts on either the euro (EUR) or the Swiss franc (CHF) and has made the following estimates:

• If EUR forwards are used: The standard deviation of quarterly changes in the

USD/SEK spot exchange rate is 0.007, the standard deviation of quarterly changes.

in the USD/EUR forward rate is 0.018, and the correlation between the changes is.

0.90.

• If CHF forwards are used: The standard deviation of quarterly changes in the

USD/SEK spot exchange rate is 0.007, the standard deviation of quarterly changes.

in the USD/CHF forward rate is 0.023, and the correlation between the changes is.

0.85.

Finally, the current USD/SEK spot rate is 0.104, the current three-month USD/EUR

forward rate is 0.471, and the current three-month USD/CHF forward rate is 0.602.

(a) Which currency should the company use for hedging purposes?

(b) What is the minimum-variance hedge position? Indicate if this is to be a long or

short position. Silver Price 9. The spot price of silver is currently $7.125/oz, while the two- and five-month forward

prices are $7.160/oz and $7.220/oz, respectively.

(a) If silver has no convenience yield what are the implied repo rates?

(b) Suppose silver has an active lease market with lease rate = 0.5% for all maturities

expressed in annualized continously compounded terms. Using the formula developed

in Question 3, identify the implied repo rate for maturities of two months and

five months.

(a) Which currency should the company use for hedging purposes?

(b) What is the minimum-variance hedge position? Indicate if this is to be a long or

short position. Silver Price 9. The spot price of silver is currently $7.125/oz, while the two- and five-month forward

prices are $7.160/oz and $7.220/oz, respectively.

(a) If silver has no convenience yield, what are the implied repo rates?

(b) Suppose silver has an active lease market with lease rate = 0.5% for all maturities

expressed in annualized continously compounded terms. Using the formula developed

in Question 3, identify the implied repo rate for maturities of two months and

five months. Use APA referencing style.

September 12, 2023

Consciousness Altered State

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Explore an intriguing altered state of consciousness from this unit, examining its causes, symptoms, and potential treatments. For this discussion, pick a substance that results in an altered state of consciousness that you find interesting. In one paragraph, write about what causes it, what it looks and feels like, and how it could be treated. Also, think about why it’s important to understand this state and how it might affect people. Find an article that talks about this state of consciousness and tell your classmates about the main points or discoveries in the article. Make sure to write clearly and use what we’ve learned in class to help explain your thoughts.

September 12, 2023

Unemployment Rate and Misrepresentation

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Unemployment Rate and Misrepresentation. Produce an example that demonstrates a worker who is a part of hidden unemployment or whose current employment status does not represent the state of the economy that is being portrayed by the unemployment rate. Using the framework of the unemployment rate, contrast what is going on in the economy compared to what the numbers tell us. HINT: It may be helpful to visualize this using a very small economy, of say 10 people, and working off of that, rather than trying to imagine a real-world economy with millions of adults in the population.

Produce an example that demonstrates a worker who is a part of hidden unemployment or whose current employment status does not represent the state of the economy that is being portrayed by the unemployment rate. Unemployment Rate and Misrepresentation. Using the framework of the unemployment rate, contrast what is going on in the economy compared to what the numbers tell us. HINT: It may be helpful to visualize this using a very small economy, of say 10 people, and working off of that, rather than trying to imagine a real-world economy with millions of adults in the population. Using the framework of the unemployment rate, contrast what is going on in the economy compared to what the numbers tell us.

September 12, 2023

Guatemala Case Study

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Guatemala Case Study. The following controversial case was reported in a local newspaper. It involved a father from Guatemala who exposed the hand of his 5-year-old son to an open gas flame as punishment for stealing a packet of gum. School staff noticed the bandage on the boy’s hand and having learned from him how he sustained the injury made a report to Child Protective Services. Citing, “we find ourselves in the cross-current of customs and habits,” the judge reduced the charge from a felony with punishment of up to 6 years in state prison to a misdemeanor and fined the father $100.00. Guatemala Case Study. The prosecutor proposed state prison for the father, and others commented that exposing a child’s hand to an open flame is not an accepted form of punishment in Guatemalan culture or in the Latin culture generally. The parents reported being unfamiliar with American culture, but now have learned their lesson and plan to be better parents. It was the father’s first time being charged with child abuse, but during the court hearing, the judge rejected the notion that several incidents of the father hitting the child with a belt could be interpreted as child abuse. After reading the case study for unit 3, do you think the judge was too lenient in the case? How is this a good example of cross-cultural conflict? Would you have reported this case to Child Protective Services? Why or why not? Make sure to ask question for peers.

Guatemala Case Study. The following controversial case was reported in a local newspaper. It involved a father from Guatemala who exposed the hand of his 5-year-old son to an open gas flame as punishment for stealing a packet of gum. School staff noticed the bandage on the boy’s hand and having learned from him how he sustained the injury made a report to Child Protective Services. Citing, “we find ourselves in the cross-current of customs and habits,” the judge reduced the charge from a felony with punishment of up to 6 years in state prison to a misdemeanor and fined the father $100.00. The prosecutor proposed state prison for the father, and others commented that exposing a child’s hand to an open flame is not an accepted form of punishment in Guatemalan culture or in the Latin culture generally. Guatemala Case Study. The parents reported being unfamiliar with American culture, but now have learned their lesson and plan to be better parents. It was the father’s first time being charged with child abuse, but during the court hearing, the judge rejected the notion that several incidents of the father hitting the child with a belt could be interpreted as child abuse. After reading the case study for unit 3, do you think the judge was too lenient in the case? How is this a good example of cross-cultural conflict? Would you have reported this case to Child Protective Services? Why or why not? Make sure to ask question for peers. Use APA referencing style.

September 12, 2023

Nursing Decision-Making

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Nursing Decision-Making. How does empowering and decision-making as a nurse leader relate to client safety outcomes? When would you use empowering strategies? Why is empowerment so challenging to implement as nurses? Next, create an Empowering scenario using the following features: The scenario must involve a client safety concern (QSEN)Links to an external site. or issue (e.g., medication administration, nurse-physician communication, patient falls, impaired nurse, adverse event, errors to patients or families, workarounds, near misses, failure to rescue, etc.). The scenario consists of empowering behaviors of a nurse manager or charge nurse toward a staff nurse.

How does empowering and decision-making as a nurse leader relate to client safety outcomes? When would you use empowering strategies? Why is empowerment so challenging to implement as nurses? Next, create an Empowering scenario using the following features: Nursing Decision-Making. The scenario must involve a client safety concern (QSEN)Links to an external site. or issue (e.g., medication administration, nurse-physician communication, patient falls, impaired nurse, adverse event, errors to patients or families, workarounds, near misses, failure to rescue, etc.). The scenario consists of empowering behaviors of a nurse manager or charge nurse toward a staff nurse. How does empowering and decision-making as a nurse leader relate to client safety outcomes? When would you use empowering strategies?

September 12, 2023

Examining Death Penalty

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Examining Death Penalty. Your response must be at least 6-8 sentences and include at least two citations from the text or other sources. All sources must be cited using APA format. You may use the following sources to complete your discussion: Criminal Law, University of Minnesota Libraries Publishing edition, 2015. Amnesty International: The Death Penalty (Links to an external site). United Nations: Safeguards guaranteeing protection of the rights of those facing the death penalty (Links to an external site). After reading chapter three of the textbook and viewing the above-referenced websites, discuss the following: Who is protected against the death penalty? According to Amnesty International where do most executions take place? How many executions take place each year? Is the death penalty a violation of the Eighth Amendment?

Your response must be at least 6-8 sentences and include at least two citations from the text or other sources. All sources must be cited using APA format. You may use the following sources to complete your discussion: Criminal Law, University of Minnesota Libraries Publishing edition, 2015. Amnesty International: The Death Penalty (Links to an external site). United Nations: Safeguards guaranteeing protection of the rights of those facing the death penalty (Links to an external site). Examining Death Penalty. After reading chapter three of the textbook and viewing the above-referenced websites, discuss the following: Who is protected against the death penalty? According to Amnesty International where do most executions take place? How many executions take place each year? Is the death penalty a violation of the Eighth Amendment?

September 12, 2023

Case Study – SingBank

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Case Study – SingBank. SingBank, a government-linked company, intends to establish a digital trading platform (called a “digital exchange”) for the trading of digital assets such as cryptocurrencies, and it is seeking a financial technology (“fintech”) service provider as a technology partner to help with the building and operation of the digital exchange. The operation of the digital exchange will require approval from the relevant regulatory authorities, and SingBank has already obtained such approvals. In order to find the most appropriate fintech service provider for the project, SingBank launched a Request For Proposal (“RFP”) setting out its objectives and requirements for the project, and sent out the RFP to various fintech service providers via email.

Antimony Tech (“AT”), a private enterprise, was one of the fintech service providers that received the RFP from SingBank. AT was excited about the prospect of partnering with SingBank to build and operate the new digital exchange. In response, AT prepared a comprehensive proposal, and submitted it to SingBank. AT’s proposal was priced at $10 million (i.e., they would do the necessary work for a total price of $10 million). Case Study – SingBank. A week after receiving AT’s proposal, SingBank arranged an interview with AT to discuss its proposal and to seek AT’s clarifications on a few aspects in the proposal. The interview was conducted via videoconferencing. During the interview, SingBank informed AT that the pricing set out in its proposal was quite high compared to the other proposals received by SingBank. The following verbal exchange took place between the two parties:

SingBank: “Would you be able to revise your pricing downward?”

AT: “What is the pricing range you are seeing in the other proposals?”

SingBank: “We received a proposal priced at $8 million.”

AT: “Let us review our proposal following this chat, and work to close the gap.”

SingBank: “If you can match that, with the same scope of work, you’ll be in a good position.” The following day, AT sent to SingBank (via email) a revised proposal for the same work scope 3abut which is now priced at $8 million. SingBank received the proposal, and was satisfied with it. Thereafter, SingBank issued to AT (via email) a document titled “Letter of Intent”, which set out the agreed terms drawn from the proposal.

After receiving the Letter of Intent, AT arranged to meet with SingBank’s representatives for a celebratory event. At this event, senior members of management from both sides shook hands, and there were also mutual exchanges of congratulations on the closing of the deal Case Study – SingBank. A week later, AT began allocating resources to ready itself for the commencement of the project. AT also turned down another prospective client it had been talking to, so as to conserve its manpower resources for the project with SingBank.

Case Study – SingBank. However, two weeks later, SingBank announced via a press release that it has selected another fintech service provider, called “Zenith”, as its technology partner for the digital exchange project. Apparently, SingBank had changed its mind about partnering with AT, as Zenith had offered a much better deal to SingBank. AT is now considering whether to take legal action against SingBank. (a) Explain whether there is a valid contract between SingBank and AT regarding the project for the building and operation of the digital exchange. In your answer, you should identify and discuss the four (4) elements of a contract. (This means that you should also state and define the four elements of a contract, discuss the relevant legal rules associated with them, and apply the legal rules with reference to the facts and circumstances described in the scenario.) (65 marks) (b) Discuss the three (3) functions of business law (namely, as facilitator, regulator and adjudicator), and use specific examples from the abovementioned scenario to explain how business law is relevant for a business entity such as AT in relation to each of these functions. (35 marks). Use APA referencing style.

September 11, 2023

One Year FRA rate

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One Year FRA rate If the six-month interest rate is 6% and the one-year interest rate is 8%, Assume that the number of days up to six months is 182 and from six months to one year is 183. what is the meaning for an FRA? over the period from six months to one year? A forward rate agreement (FRA) is an over the counter (OTC) contract between parties that determines the rate of interest to be paid on an agreed-upon date in the future.

In other words, an FRA is an agreement to exchange an interest rate commitment on a notional amount. Forward rate agreements (FRAs) are over the counter (OTC) contracts between parties that determine the rate of interest to be paid on an agreed-upon date in the future. One Year FRA rate the notional amount is not exchanged but is a cash amount based on the rate differentials and the notional value of the contract. A borrower might want to fix their borrowing costs today by entering into an FRA. The forward rate agreement determines the rates to be used along with the termination date and notional value. FRAs are cash-settled. The payment is based on the net differentiate between the interest rate of the contract and the floating rate in the mark referential rate? The notional amount is not exchanged. It is a cash amount based on the rate differentials and the notional value of the contract. One Year FRA rate The notional amount is not exchanged but is a cash amount based on the rate differentials and the notional value of the contract. A borrower might want to fix their borrowing costs today by entering into an FRA. The forward rate agreement determines the rates to be used along with the termination date and notional value. FRAs are cash-settled. The payment is based on the net difference between the interest rate of the contract and the floating rate in the mark reference rate. The notional amount is not exchanged. It is a cash amount based on the rate differentials and the notional value of the contract. Use APA referencing style.

September 11, 2023

LIBOR RATE RETURNS

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LIBOR RATE RETURNS

If the three-month (91 days) Libor rate is 4% and the six-month (183 days) rate is 5%, what should be the 3°ø6 FRA rate? If, at the end of the contract, the three-month Libor rate turns out to be LIBOR was established as a standardized benchmark for the pricing of floating-rate5%, what should the settlement amount be? corporate loans.

However, LIBOR RATE RETURNS, its introduction coincided with the growth of new interest rate– based financial instruments—such as forward rate agreements and interest rate swaps—that also require standardized and transparent interest rate benchmarks. LIBOR is supposed to reflect reality—an average of what banks believe they would have to pay to borrow a “reasonable” amount of currency for a specified short period. That is, it what represents the cost of funds—although a bank may not actually have a need for the funds on any given day. But LIBOR has long been dogged by perceptions that the method for setting the rates is flawed and prone to distorted results during periods of market stress when banks stop lending to each other across the full maturity spectrum, from overnight to one year. LIBOR RATE RETURNS A more direct challenge to its authenticity came from attempts to manipulate LIBOR (and other benchmark rates) by the big British bank Barclays, for which it agreed in June 2012 to pay fines totaling about $450 million to regulators in the United Kingdom and the United States. But LIBOR has long been dogged by perceptions that the method for setting the rates is flawed and prone to distorted results during periods of market stress when banks stop lending to each other across the full maturity spectrum, from overnight to one year. A more direct challenge to its authenticity came from attempts to manipulate LIBOR (and other benchmark rates) by the big British bank Barclays, LIBOR RATE RETURNS for which it agreed in June 2012 to pay fines totaling about $450 million to regulators in the United Kingdom and the United States. Use APA referencing style.

September 11, 2023

ACT/360 Convention

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ACT/360 Convention You have entered into the 69 FRA of Question 20 at the rate of 6%. After three months, the FRA is now a 3 × 6 FRA. If the three-month Libor rate is 5%, and the six-month Libor rate is 7%, what is the current value of the FRA? Assume that the number of days in the first three months is 92. 20.

ACT/360 Convention You enter into an FRA of notional 6 million to borrow on the three-month underlying Libor rate six months from now and lock in the rate of 6%. At the end of six months, if the underlying three-month rate is 6.6% over an actual period of 91 days, what is your payoff given that the payment is made right away? Recall that the ACT/360 convention applies. The payoff for the FRA is $9,073.92 and the current value of the FRA is $306,720. 21. In this case, the original FRA of a notional 6 million has transformed into a 3 × 6 FRA after three months. The 3 × 6 FRA implies a three-month borrowing period starting three months from now and ending six months from now.

To calculate the current value of the FRA, we need to compare the locked-in rate of 6% with the current market rates for the corresponding periods. The three-month Libor rate is 5% and the six-month Libor rate is 7%. Using the ACT/360 convention, the locked-in rate of 6% per annum corresponds to a 0.5% rate for three months. The current three-month Libor rate of 5% corresponds to a 0.4167% rate for three months, and the six-month Libor rate of 7% corresponds to a 0.5833% rate for three months. ACT/360 Convention To calculate the value of the FRA, we take the difference between the locked-in rate and the current market rate for the relevant period. In this case, it would be 0.5% – 0.4167% = 0.0833% Multiplying this by the notional amount of 6 million gives us the current value of the FRA: 0.0833% * 6,000,000 = 4,999.8. Therefore, the current value of the FRA is approximately 4,999.8. Overall, your payoff in scenario 20 would be 3,000, while the current value of the FRA in scenario 21 is approximately 4,999.8. Use APA referencing style.

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