...Archer-Lock and Becky Tabaczynski, two employees at AIFS, work together to hedge the risks. The company had been so successful and obtained a loyal customer base with their “no surprise” pricing policy. The pricing policy was that their prices would not fluctuate before their next catalog was issued. The college division only disbursed two catalogs per year and the high school division only disbursed 1 catalog yearly. AIFS incurs more risk by maintaining these prices over such a long period of time. The demand and currency exchange rate are very volatile. Unexpected world events, such as terrorism attacks, can directly affect the demand to study abroad and currency exchange rates. However, the “no surprise” pricing policy is heavily rewarded with loyal customers. In efforts to maintain their loyal customers, AIFS has no intentions on changing this policy. Hedging these risks is not an easy solution. AIFS must aim for high sales volume and high exchange rates to remain profitable. AIFS can hedge with contracts and options, but determining the proper mix of the two is difficult. To incur less risk, it appears hedging with options would be ideal. Options allow for more consistent or stable earnings with higher costs. 100% of AIFS’s needs need to be covered, but I believe options are the best way to stabilize the company. Options should be ideally used for the...
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...(ex traveler’s checks, personal checks, or currency from another country other than U.S.) Some countries does not have a stable rate of exchange, and that can lead to major disadvantage for a person that’s doing business or just travelling around the area. Every place seem to have it’s own exchange rate, and no one really knows which one is the best unless you ask around and check it out for yourself. This can be a bit time wasting for the person who is looking for maximizing their buying power. Recommended Course of Action I think the best way is to create a website, and having people updating it all around the world. That way you can log on using your cell phone and see the constant rate of exchange for any country. We shouldn’t rely on airport exchange station because that’s one of the worst place you can exchange money for any country. This idea will be similar to something that we have in the U.S. for gas station prices. People can update it and tells you what their local price is at. Basis for recommendation I think having a customer base website to where everyone can update the best currency trading locations will help travelers all over the world. It will save time and also give travelers a peace of mind. This solution beats other solution because it saves time, and also is the best route for exchange when the countries have an unstable rate of exchange. All other alternatives seem time consuming and uncertain. Reasonable Alternative course of action ...
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...Stages of Research Process RES 351 July 27, 2015 Stages of Research Process In order to get any answers when it comes to any topic in which information is needed or more knowledge needs to be gained, a person needs to do research. Most times in most cases people have to do research in order to get an educated and well informed answer to whatever they are asking. The two articles in which are being used for this assignment are “The Researches on Exchange Rate Risk of Chinese Commercial Banks Based on Copula-Garch Model” and “Food service research: An integrated approach.” Both are done with good intentions and for informative reasons. Purpose of Article Food Service Research: An Integrated Approach is a research article about food service and how it can be beneficial to someone’s wellbeing. The reason this article was written and topic researched is because the author wanted to share with people why food service needs to become healthier and why it is beneficial for everyone that this happens. The author feels that people can be taught to make food service a healthier environment for everyone involved from the works to the customers and guests (Rodgers, 2011). In 2005 currency exchange was reformed. Because the currency exchange was reformed, China decided to make their exchange floating. They decided it would better benefit them if they went with currency exchange based on supply and demand. This can tend to be a not so good thing for other countries including the...
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...Fixed Income Risk Management Second Assignment QUESTION 1 Maturity 0.5 1 1.5 Interest Rate 0.01 0.016 0.02 0.022 Discount Factor 0.9940 0.9841 0.9704 0.9570 Pz(0.T) 99.4018 98.4127 97.0446 95.6954 2 Table 1- Zero option prices A. Given the current term structure of interest rates, we can easily derive the prices of zero-coupon bonds. As the interest rates are continuously compounded, the formulas used to calculate the discount factors and the zero prices are: ������(������, ������) = ������ −������(������,������)(������− ������) ������������ (������, ������) = 100 × ������(������, ������) B. Assuming Ɵi=1% and σ=1.50%, we can set up the Ho-Lee model, which implies the following 3-step interest rate tree (where each step is = 0.5): 1 1.20% 2.76% 0.64% 2 4.32% 2.20% 0.08% Table 2- Ho-Lee interest rate tree 3 5.88% 3.76% 1.64% -0.48% At each node, the interest rate was calculated using ������������+1,������ = ������������,������ + ������������ × ∆ + ������ × √∆ For upward movements, and ������������+1,������+1 = ������������,������ + ������������ × ∆ − ������ × √∆ For downward movements. The risk neutral probability of an upward or downward movement is set at p*=1/2. The model implied zero-coupon prices are then computed using the different step bond trees (Table 14 in the Appendix). The following table shows the comparison between the implied and the term structure zero-coupon prices for each maturity: the Check row contains the difference between...
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...LIFE TABLES Life tables are statistical tools constructed for measuring the mortality of a population. They provide a description of the most important aspects of the state of human mortality. They try to show, for a person at a particular age, what the probability is that they die before their next birthday. TYPES OF LIFE TABLES Life tables have been classified into several types: 1. Conventional/period/cross-sectional life tables- these tables are based on age specific mortality rates for a specific period of time for the whole population. These rates are derived from deaths occurring over a selected period of time and the population at the mid-point of this period, a period of one year is mostly considered. 2. Generation/cohort life tables- these are based on a cohort throughout its life. We should remember a cohort is a group of individuals all born during the same time interval. The table shows the probability of death of people from a given cohort over the course of their lifetime. 3. Complete life tables- these are tables in which the mortality experience is considered in each single year throughout the life span. It is a more detailed method of measuring mortality since these tables are constructed on yearly basis. 4. Abridged life tables- are tables in which the measures are given for age groups and not for every single year of age. Its values are mostly in general terms and it is used to simplify the complete life tables whose construction is very laborious....
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...A Project Report ON Modelling & Synthesis of Poly(butyl-acrylate) by Batch Emulsion Polymerization Technique Submitted in partial fulfilment of the requirements for the awards of degree of BACHELOR OF TECHNOLOGY In CHEMICAL ENGINEERING Guided by: Submitted by: Dr. Sushant Upadhyaya Rajat Chauhan (2010UCH176) Assistant Professor Prabhat Pachuri (2010UCH201) MNIT Jaipur Pushpendra Dagar (2010UCH209) Nitin Mathur (2010UCH226) DEPARTMENT OF CHEMICAL ENGINEERING MALAVIYA NATIONAL INSTITUTE OF TECHNOLOGY JAIPUR June 2014 MALAVIYA NATIONAL INSTITUTE OF TECHNOLOGY, JAIPUR CERTIFICATE This is to certify that following students of Department of Chemical Engineering, Malaviya National Institute of technology, Jaipur have undergone a project titled as “Modelling & Synthesis of Poly(butyl-acrylate) by Batch Emulsion Polymerization Technique” under my guidance. During this process, their performance is found ____________________. Rajat Chauhan (2010 UCH 176) Prabhat Pachaury (2010 UCH 201) Pushpendra Dagar (2010 UCH 209) Nitin Mathur (2010 UCH 226) Dr. Sushant Upadhyaya ...
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...total number of compounding periods and the interest rate per period: Term of Investment 13 16 8 18 14 10.5 12 annually quarterly semiannually monthly quarterly semiannually quarterly 3 20 24 72 16 18 3 Nominal (Annual) Rate (%) Interest Compounded Compounding Periods Rate per Period (%) 13 4 4 1.5 3.5 5.25 3 1. 3 years 2. 5 years 3. 12 years 4. 6 years 5. 4 years 6. 9 years 7. 9 months T11-2 REVIEW EXERCISES | CHAPTER 11—SECTION I 1. Periods 5 Years 3 Periods/Year 5 3 3 1 5 3 13 Nominal Rate 5 5 13% Rate per period 5 Periods>Year 1 2. Periods 5 Years 3 Periods/Year 5 5 3 4 5 20 Nominal Rate 16 Rate per period 5 5 5 4% Periods>Year 4 3. Periods 5 Years 3 Periods/Year 5 12 3 2 5 24 Nominal Rate 8 Rate per period 5 5 5 4% Periods>Year 2 4. Periods 5 Years 3 Periods/Year 5 6 3 12 5 72 Nominal Rate 18 Rate per period 5 5 5 1.5% Periods>Year 12 5. Periods 5 Years 3 Periods/Year 5 4 3 4 5 16 14 Nominal Rate 5 5 3.5% Rate per period 5 Periods>Year 4 6. Periods 5 Years 3 Periods/Year 5 9 3 2 5 18 10.5 Nominal Rate 5 5 5.25% Rate per period 5 Periods>Year 2 7. Periods 5 Years 3 Periods/Year 5 .75 3 4 5 3 12 Nominal Rate 5 5 3% Rate per period 5 Periods>Year 4 T11-3 REVIEW EXERCISES | CHAPTER 11—SECTION I Manually calculate the compound amount and compound interest for the following investments: Principal 2 1 3 10 12 8 annually quarterly semiannually Term of Nominal Interest Investment (years) Rate (%) Compounded Compound Amount $4,840 $11,255.09...
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...Residential Group Homes Failing Reimbursement Rates: An Analysis of North Los Angeles County Regional Center’s Failing Residential Providers August 30, 2015 Introduction In California individuals with developmental disabilities receive hands-on training provided by over 45,000 vendors, who are contracted by 21 separate non-profits called regional centers (Information About RC, 2015). Each regional center has an annual performance contract with California’s Department of Developmental Service. The performance contract measures how each regional center delivers services to the individuals they support in their catchment area. In addition, the performance contract is supposed to assure the proper funding for each regional center, and it serves as a monitoring mechanism to help verify that each regional center is using the funds appropriately (RC Performance Contracts, 2015). All of this was made possible by ground breaking legislation passed in 1977 known as the Lanterman Developmental Disabilities Act (Lanterman, 2015). The Lanterman Act declares that individuals with developmental disabilities have the same legal rights and responsibilities guaranteed to all other persons by federal and state constitutions and laws, and charges the regional center with advocacy and protection of these rights. A developmental disability is a severe incapacity which attributes to a mental or physical impairment for the individual before the age of eighteen. These disabilities...
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...sales are given by Capital IQ from year 2014 to year 2018, and their values are listed below in the table. By calculating the average growth rate of sales over next five years, which is 12.8%, and have it compared with the one from the previous three years, which is 25.8%, it can be concluded that the projected sales value given by Capital IQ are reasonable. The average growth rate for the next five years represents a stable rate for a longer term, which should be lower than the short-term one when seeing the future performance of the company in a long-run view (Appendix A). Table1. Expected Cash Flows (in millions) | 2014 | 2015 | 2016 | 2017 | 2018 | Sales | 68,176 | 78,377 | 88,614 | 98,769 | 109,330 | The estimated EBITDA to Sales ratio is gained by calculating the average value of EBITDA margins from year 2011 to year 2013, which is 33.3%. Because the sales margins are acquired by Capital IQ from the market data as reliable source, we can use the average of the previous three years’ EBITDA margins as a constant multiple to project the future five years’ EBITDA. By assuming a constant EBITDA/Sales ratio for the next five year, we can get the EBITDA value using this ratio and projected sales. The predicted EBITDA value are different from the values given by Capital IQ mainly because the future five years revenues are estimated with a comparative slower growth rate, resulting in lower EBITDA/Sales ratio and also lower EBITDA (Appendix A). Table2. EBITDA (in millions) ...
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...www.qyresearchreports.com Global and China Functional beverages Industry 2013 Market Research Report The report firstly introduced Functional beverages basic information included Functional beverages definition classification application industry chain structure industry overview; international market analysis, China domestic market analysis, Macroeconomic environment and economic situation analysis and influence, Functional beverages industry policy and plan, Functional beverages product specification, manufacturing process, product cost structure etc. then statistics Global and China key manufacturers Functional beverages capacity production cost price profit production value gross margin etc details information, at the same time, statistics these manufacturers Functional beverages products customers application capacity market position Activationontact information etc company related information, then collect all these manufacturers data and listed Global and China Functional beverages capacity production capacity market share production market share supply demand shortage import export consumption etc data statistics, and then introduced Global and China Functional beverages 2009-2013 capacity production price cost profit production value gross margin etc information. And also listed Functional beverages upstream raw materials equipments and down stream clients survey analysis and Functional beverages marketing channels industry development trend and proposals. In the...
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...2014 Market Research Report on Global and China Smartphone Industry 中国市场报告网 www.360baogao.com 报告简介 |【名 称】 |2014 Market Research Report on Global and China Smartphone Industry | |【编 号】 |13500A1 | |【版 本】 |2014年2月 | |【价 格】 |纸质版：14000元 电子版：14000元 纸质＋电子版：15000元 | |【优惠价】 |￥ 12600 元 | |【电 话】 |400 612 8668、010-66181099、010-66182099 传真：010-66183099 | |【邮 箱】 |Kf@360baogao.com | |【网 址】 |http://www.360BaoGao.com/2014-02/2014_Market_Research_Report_on_Global_and_China_Smartphone_Industry/ | |【提 示】 |如需中文、日文等其他语言版本报告，请向客服咨询。 | "2014 Market Research Report on Global and China Smartphone Industry" was professional and depth research report on Global and China Smartphone industry. The report firstly introduced Smartphone basic information included Smartphone definition classification...
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...Services Epidemiology and Statistics Unit July 2011 Table of Contents Mortality Consumption Prevalence of Tobacco Use and Cessation Tobacco Advertising and Promotion State Laws and Secondhand Smoke International Smoking Prevalence List of Tables Table 1: Smoking-Attributable Deaths Among Adults, 2000-2004 and Projected Smoking-Attributable Deaths Among Youth, 2003-2004 Table 2: Cigarette Consumption, United States, 1900-2007 Table 3: Number of Adults Who Were Current Smokers by Sex, Race, and Age, Selected Years, 1965-2009 Table 4: Percent of Adults Who Were Current Smokers by Sex, Race, and Age, Selected Years, 1965-2009 Table 5: Age-Adjusted Prevalence (%) of Current Cigarette Smoking by Persons 25 and Older by Sex, Race and Education, Selected Years, 1974-2009 Table 6: Percent of Adults Who Smoke by the Number of Cigarettes Smoked Daily and the Percent Who Smoked >24 Cigarettes Daily by Sex, Race, Hispanic Origin, Age and Education, Selected Years, 1974-2009 Table 7: Percent of Young Adults (Ages 18-24) Who Were Current, Former or Never Smokers by Sex, Race and Education, 1965-2009 Table 8: Current Cigarette Smoking Prevalence (%) Among Adults by State, Selected Years, 1984-2009 Table 9: Percent of Adults Who Use Other Tobacco Products by Age and Sex, 2002-2009 Table 10: Percent of All Middle and High School Students Who Were Current Users of Tobacco Products by Sex and Race/Ethnicity, 2000-2009 Table 11: Percent of High School Students Who Reported Current...
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...Poverty in Canada since 1989 The poverty rates across Canada have seen a rise and fall since 1989. The poverty rates are based on age, gender and family type. However, the poverty rates have seen a decline since 1989. The poverty for all persons in 1988 was 10.8% and in 2007 it was 9.2% (Statistics Canada, 2009, Table 202-0802). That is a 14.8% decrease in poverty for all persons in Canada over time (Statistics Canada, 2009, Table 202-0802). The decline in poverty could result for many reasons. Education, jobs and the economy of Canada may have improved a lot during the past twenty years. Canada is a developing country and is seeing improvements in social status of people. The class system plays a huge role. Could it be that families across Canada are moving up a class? Persons in economic families had a poverty rate of 8% in 1988 and it dropped to 6% in 2007 (Statistics Canada, 2009, Table 202-0802). It can be seen that there is a 25% decrease in poverty for persons in economic families over time (Statistics Canada, 2009, Table 202-0802). Therefore persons in economic families are doing well compared to how they were in 1989. It is pretty clear that the economy of Canada is developing. This would not be the case if poverty had increased during the past twenty years. Poverty still exists, no doubt about that but it will continue to decline if Canada continues to improve its economic situation. Poverty still exists for many reasons such as people in poor class work as much as...
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...ADVANCES EMPLOYEE SALARY ATTENDANCE pHILHEALTH PHILHEALTH CONTRIBUTION TABLE OWNER EMPLOYEE SALARY SUMMARY Social security system (SSS) SSS CONTRIBUTION TABLE SSS CONTRIBUTION PAYMENT National Wage and Productivity Commission WAGE RATE PHILHEALTH CONTRIBUTION PAYMENT HOME DEVELOPMENT MUTUAL FUND (PAG-IBIG FUND) HDMF CONTRIBUTION TABLE HDMF CONTRIBUTION PAYMENT BUREAU OF INTERNAL REVENUE (bir) TAX REPORT 0 A AND E LIVE AND DRESSED CHICKEN PAYROLL SYSTEM EMPLOYEE ADVANCES EMPLOYEE SALARY ATTENDANCE pHILHEALTH PHILHEALTH CONTRIBUTION TABLE OWNER EMPLOYEE SALARY SUMMARY Social security system (SSS) SSS CONTRIBUTION TABLE SSS CONTRIBUTION PAYMENT National Wage and Productivity Commission WAGE RATE PHILHEALTH CONTRIBUTION PAYMENT HOME DEVELOPMENT MUTUAL FUND (PAG-IBIG FUND) HDMF CONTRIBUTION TABLE HDMF CONTRIBUTION PAYMENT BUREAU OF INTERNAL REVENUE (bir) TAX REPORT A AND E LIVE AND DRESSED CHICKEN PROPOSED PAYROLL System Context diagram DFD EMPLOYEE ADVANCES EMPLOYEE SALARY SLIP EMPLOYEE DATA 2 PROCESS EMPLOYEE SALARY ATTENDANCE D1 EMPLOYEE RECORD EMPLOYEE INFORMATION TOTAL HOURS WORKED WAGE RATE EMPLOYEE SALARY SUMMARY D2 ADVANCES RECORD ADVANCES D3 TIME CARD RECORD HOURS WORKED ADVANCES EMPLOYEE INFORMATION SSS CONTRIBUTION TABLE SSS CONTRIBUTION PHILHEALTH CONTRIBUTION TABLE PHILHEALTH CONTRIBUTION HDMF CONTRIBUTION HDMF CONTRIBUTION TABLE TAX REPORT OWNER National Wage and Productivity Commission BUREAU...
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...able to: n The Interest Rate Simple Interest Compound Interest Single Amounts • Annuities • Mixed Flows Understand what is meant by “the time value of money.” Understand the relationship between present and future value. Describe how the interest rate can be used to adjust the value of cash flows – both forward and backward – to a single point in time. Calculate both the future and present value of: (a) an amount invested today; (b) a stream of equal cash flows (an annuity); and (c) a stream of mixed cash flows. Distinguish between an “ordinary annuity” and an “annuity due.” Use interest factor tables and understand how they provide a shortcut to calculating present and future values. Use interest factor tables to find an unknown interest rate or growth rate when the number of time periods and future and present values are known. Build an “amortization schedule” for an installment-style loan. n n Compounding More Than Once a Year Semiannual and Other Compounding Periods • Continuous Compounding • Effective Annual Interest Rate n n n Amortizing a Loan Summary Table of Key Compound Interest Formulas Summary Questions Self-Correction Problems Problems Solutions to Self-Correction Problems Selected References n n n n n n n n n n n 39 Part 2 Valuation The chief value of money lies in the fact that one lives in a world in which it is overestimated. —H. L. MENCKEN A Mencken Chrestomathy The Interest Rate Which would you prefer – $1...
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