Where a financial institution makes a loan commitment, the borrower, in drawing down on their loan commitment, causes increased cash flow needs by the DI to fund the loan commitments. There are three ways a DI can offset the effect of Asset-side liquidity risk such as drawing down of a loan commitment in all of the following sitiuations Except: a. Reduce excess cash reserves to minimum levels required to meet reserve requirements based on the decision made by management independant of regulatory requirements. b. Reduce balance sheet items such as retain earnings to the meet the minimum required capital levels. c. Taking offsetting measures such as borrowing funds or even purchasing funds on the money market. d. Reducing liquid type assets on their balance sheet such at T-bills by selling them.
Q: How can the contingency theory of leadership be applied in different organizational contexts?
A: Concept Introduction :- The contingency theory of leadership suggests that there is no…
Q: Article: Harry Hartfield was looking over some recent travel brochures while consulting his recent…
A: In the business world, cost is a major factor in decision-making as it can have a direct impact on…
Q: Be very detailed what is the kellogg's product and past process
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: Explain how business managers could act ethically?
A: Ethical management can be defined as a management approach in which a manager of a company practices…
Q: In the context of the motivation/hygiene theory, which of the following is considered a motivator?…
A: Frederick Herzberg, a behavioral scientist, proposed the motivator-hygiene hypothesis, sometimes…
Q: What is human resource cost? Discuss why Measure HR Costs?
A: The study of cost behaviour in response to one or more HR parameters is known as human resource cost…
Q: In an emergency, every firm needs a disaster recovery plan. How do you assess the disaster recovery…
A: In today's fast-paced business environment, it's important for every organization to have a disaster…
Q: Which term most closely relates to associative forecasting techniques? Select one: a. time series…
A: Forecasting techniques are used to anticipate future events and trends. Associative forecasting…
Q: Discuss..why is HR Scorecard important for organizations today ?
A: Human resource scorecards are vital tools for organizations today in order to measure and track the…
Q: Advise a farmer who want to venture into cat food processing on the management process and…
A: Farmers looking to diversify their income streams may find a lucrative business opportunity in the…
Q: List and discuss the systematic biases related to price. What are the implications of systematic…
A: Pricing is a fundamental component of marketing strategy, as it directly influences consumer…
Q: Conduct the following for Jumeirah Group: - PESTEL analysis - Porter’s 5 forces matrix
A: Businesses in an economy are influenced by micro and macro factors in its external environment.…
Q: Write a summary lead and two following paragraphs of a news release for: Your organization which…
A: ABC Bottled Water Company, a leading producer of premium mineral water, has announced the…
Q: What are two things someone can learn from Managing in a Global Environment and Planning and Goal…
A: The strategy used by business managers to address the various worldwide circumstances that have an…
Q: With respect to relationship management, identify what category corrections officers are in and…
A: Introduction: Relationship management is a key strategy in business, marketing, and personal…
Q: What is a partnership? Outline the legal issues involved in the formation of a partnership. In your…
A: A partnership is a type of business organization where two or more individuals come together to…
Q: John is operating a business in the Caribbean in the manufacturing sector. Over the years the…
A: The above case's summary is about a person named J who has a manufacturing business in Region C that…
Q: What about you? Put yourself in the position of the Atlanta educators whose dilemma is described in…
A: If my students performed badly, it will also affect my work, in order to overcome this situation,…
Q: How can business leaders develop and apply their emotional intelligence?
A: Emotional intelligence is a crucial skill for business leaders, as it allows them to effectively…
Q: Define “significant influence.” Is it more beneficial to have “significance influence” over an…
A: "The solution has been provided in a generalized manner". Significant influence plays a crucial…
Q: John is operating a business in the Caribbean in the manufacturing sector. Over the years the…
A: In the given scenario, John is an entrepreneur who has built up and successfully run a manufacturing…
Q: Focused strategies keyed either to low-cost or differentiation are especially appropriate for…
A: Focused strategies are an effective approach for companies operating in highly competitive…
Q: Competitive Dynamic Tesla has recently announced that the will be cutting prices on their cars by…
A: Competitive dynamics is a crucial concept in the field of strategy, which involves analyzing the…
Q: Director Smith has decided to form a task force that would develop a performance management system…
A: Performance management is a crucial aspect of organizational management that involves creating a…
Q: You must include benefits of the functional structure if John chooses Reduces/simplifies control…
A: John's organization is looking to adopt a more structured approach to its operations by implementing…
Q: Casey is on trial under criminal allegations that she engaged in fraudulent behavior at the company…
A: In the given case, Casey is on trial for criminal allegations of fraudulent behavior at the company…
Q: briefly state an example of a work team which you are or have been a member in your company (or just…
A: Working in a team can be an incredibly rewarding experience. Being part of a team provides the…
Q: why should we discover this interrelationship?
A: The understanding of the interrelationship between entrepreneurial behaviour and attitudes, economic…
Q: What steps can Janine take to help convince her Uncle Momo that the company needs a strategic…
A: Note: There is no Janine in the case study. Bobo is there in the case study. Strategic planning is…
Q: What are the key characteristics of a mechanistic organizational structure?
A: Concept Introduction :- Mechanistic organizational structure is a type of organizational design that…
Q: SLO 6.1. Supply contributes to organizational goals and strategies through: Strategic contributions…
A: Note: “Since you have posted multiple questions, we will provide the solution only to the first…
Q: How can conflict strengthened problem solving skills.
A: Human resources are the key behind sucess in an organization. No business can achieve sucess…
Q: ERP systems often conform to standard procedures. It, however, begs the question: who gets to decide…
A: Enterprise Resource Planning (ERP) systems are designed to standardize and streamline business…
Q: 6. If you are a CEO, how can you handle politics within your organization?
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: There is no one-size-fits-all organizational structure. Instead, organizations should consider…
A: Organizational design refers to the process of creating or modifying an organization's structure,…
Q: How to develop CSR commitments and enumerate the general steps of CSR commitments?
A: Corporate Social Responsibility (CSR) is a critical aspect of modern business operations. It refers…
Q: Describe the causes and consequences of Organizational conflict .
A: Organizational conflict often occurs in the workplace as a result of disparities in the aims,…
Q: Scenario: John is operating a business in the Caribbean in the manufacturing sector. Over the years…
A: Businesses can now reach a wider audience beyond their own country and reach a portion of the global…
Q: During the COVID 19 pandemic organizations experienced many changes where they fast forwarded into…
A: Hybrid arrangement in an organization refers to a work setup that combines both remote work and…
Q: By combining several theories and models, design an influence, power, and motivation leadership…
A: Leadership is the ability to guide, direct, and motivate a team or organization toward achieving its…
Q: rovide a summary of classical subject background for Entrepreneurial Behaviour and Attitudes
A: Entrepreneurial Behaviour and Attitudes are a complex and varied topic, with roots in economics,…
Q: The ratings of proposals must be consistent with the narratives provided by the Source Selection…
A: The process of selecting a vendor or contractor through a competitive biding process can be complex,…
Q: SLO-3.3 The five “right objectives” of purchasing are: A) Quality, Quantity, Price, Time, Place B)…
A: Purchasing is an essential function of any business, as it involves the acquisition of goods and…
Q: out-groups run counter to building community in groups. How important do you think it is for a…
A: In todays fast-paced business world, building a strong sense of community within a team is more…
Q: Is it feasible that lean management ignores some of the factors that contribute to the success of an…
A: Lean management is an approach to managing an organization that focuses on maximizing customer value…
Q: Describe a hypothetical job situation in which you might be a Whistle Blower.
A: A job situation refers to the circumstances and conditions in which an individual is employed or…
Q: Does the system have any indicators of when its time has come to be retired?
A: A system is a collection of parts that work together to do a particular job or accomplish a…
Q: Discuss Controlling. Discuss the importance of two basic types of financial statements.
A: SOLUTION: Monitoring, assessing, and altering organisational processes and activities to make sure…
Q: Which criteria must to be used while evaluating various process technologies?
A: Evaluating process technologies is a critical task for organizations as it enables them to choose…
Q: Explain what are some common methods used for management development, and how effective are they
A: Concept introduction : Management development refers to the process of improving the skills,…
Where a financial institution makes a loan commitment, the borrower, in drawing down on their loan commitment, causes increased cash flow needs by the DI to fund the loan commitments. There are three ways a DI can offset the effect of Asset-side liquidity risk such as drawing down of a loan commitment in all of the following sitiuations Except:
Reduce
Reduce
Taking offsetting measures such as borrowing funds or even purchasing funds on the
Reducing liquid type assets on their balance sheet such at T-bills by selling them.
Step by step
Solved in 2 steps
- A European put option allows an investor to sell a share of stock at the exercise price on the exercise data. For example, if the exercise price is 48, and the stock price is 45 on the exercise date, the investor can sell the stock for 48 and then immediately buy it back (that is, cover his position) for 45, making 3 profit. But if the stock price on the exercise date is greater than the exercise price, the option is worthless at that date. So for a put, the investor is hoping that the price of the stock decreases. Using the same parameters as in Example 11.7, find a fair price for a European put option. (Note: As discussed in the text, an actual put option is usually for 100 shares.)Suppose you currently have a portfolio of three stocks, A, B, and C. You own 500 shares of A, 300 of B, and 1000 of C. The current share prices are 42.76, 81.33, and, 58.22, respectively. You plan to hold this portfolio for at least a year. During the coming year, economists have predicted that the national economy will be awful, stable, or great with probabilities 0.2, 0.5, and 0.3. Given the state of the economy, the returns (one-year percentage changes) of the three stocks are independent and normally distributed. However, the means and standard deviations of these returns depend on the state of the economy, as indicated in the file P11_23.xlsx. a. Use @RISK to simulate the value of the portfolio and the portfolio return in the next year. How likely is it that you will have a negative return? How likely is it that you will have a return of at least 25%? b. Suppose you had a crystal ball where you could predict the state of the economy with certainty. The stock returns would still be uncertain, but you would know whether your means and standard deviations come from row 6, 7, or 8 of the P11_23.xlsx file. If you learn, with certainty, that the economy is going to be great in the next year, run the appropriate simulation to answer the same questions as in part a. Repeat this if you learn that the economy is going to be awful. How do these results compare with those in part a?In the financial world, there are many types of complex instruments called derivatives that derive their value from the value of an underlying asset. Consider the following simple derivative. A stocks current price is 80 per share. You purchase a derivative whose value to you becomes known a month from now. Specifically, let P be the price of the stock in a month. If P is between 75 and 85, the derivative is worth nothing to you. If P is less than 75, the derivative results in a loss of 100(75-P) dollars to you. (The factor of 100 is because many derivatives involve 100 shares.) If P is greater than 85, the derivative results in a gain of 100(P-85) dollars to you. Assume that the distribution of the change in the stock price from now to a month from now is normally distributed with mean 1 and standard deviation 8. Let EMV be the expected gain/loss from this derivative. It is a weighted average of all the possible losses and gains, weighted by their likelihoods. (Of course, any loss should be expressed as a negative number. For example, a loss of 1500 should be expressed as -1500.) Unfortunately, this is a difficult probability calculation, but EMV can be estimated by an @RISK simulation. Perform this simulation with at least 1000 iterations. What is your best estimate of EMV?
- Seas Beginning sells clothing by mail order. An important question is when to strike a customer from the companys mailing list. At present, the company strikes a customer from its mailing list if a customer fails to order from six consecutive catalogs. The company wants to know whether striking a customer from its list after a customer fails to order from four consecutive catalogs results in a higher profit per customer. The following data are available: If a customer placed an order the last time she received a catalog, then there is a 20% chance she will order from the next catalog. If a customer last placed an order one catalog ago, there is a 16% chance she will order from the next catalog she receives. If a customer last placed an order two catalogs ago, there is a 12% chance she will order from the next catalog she receives. If a customer last placed an order three catalogs ago, there is an 8% chance she will order from the next catalog she receives. If a customer last placed an order four catalogs ago, there is a 4% chance she will order from the next catalog she receives. If a customer last placed an order five catalogs ago, there is a 2% chance she will order from the next catalog she receives. It costs 2 to send a catalog, and the average profit per order is 30. Assume a customer has just placed an order. To maximize expected profit per customer, would Seas Beginning make more money canceling such a customer after six nonorders or four nonorders?A project does not necessarily have a unique IRR. (Refer to the previous problem for more information on IRR.) Show that a project with the following cash flows has two IRRs: year 1, 20; year 2, 82; year 3, 60; year 4, 2. (Note: It can be shown that if the cash flow of a project changes sign only once, the project is guaranteed to have a unique IRR.)In August of the current year, a car dealer is trying to determine how many cars of the next model year to order. Each car ordered in August costs 20,000. The demand for the dealers next year models has the probability distribution shown in the file P10_12.xlsx. Each car sells for 25,000. If demand for next years cars exceeds the number of cars ordered in August, the dealer must reorder at a cost of 22,000 per car. Excess cars can be disposed of at 17,000 per car. Use simulation to determine how many cars to order in August. For your optimal order quantity, find a 95% confidence interval for the expected profit.
- Solve for the future worth of each of the given series of payments: (a) $12,000 at the end of each six-month period for 12 years at 8% compounded semiannually. (b) $8,000 at the end of each quarter for 6 years at 12% compounded quarterly. (c) $6,000 at the end of each month for 5 years at 6% compounded monthly.Investment Advisors, Inc., is a brokerage firm that manages stock portfolios for a number of clients. A particular portfolio consists of U shares of U.S. Oil and H shares of Huber Steel. The annual return for U.S. Oil is $3 per share and the annual return for Huber Steel is $5 per share. U.S. Oil sells for $25 per share and Huber Steel sells for $50 per share. The portfolio has $80,000 to be invested. The portfolio risk index (0.50 per share of U.S. Oil and 0.25 per share for Huber Steel) has a maximum of 700. In addition, the portfolio is limited to a maximum of 1000 shares of U.S. Oil. The linear programming formulation that will maximize the total annual return of the portfolio is as follows: Max 3U + 5H Maximize total annual return s.t. 25U + 50H <= 80,000 Funds available 0.5U + 0.25H <= 700 Risk maximum 1U <= 1000 U.S. oil Maximum U, H >= 0 The computer solution is shown in…I need help with everything, please. hint: you will need to define one variable for total funds needed; one variable for each for 2 securities. and five variables for investment in savings at the beginning of each year. The 6th year will be 1.04 times the 5th-year saving variable. Formulate the problem and submit the formulation - no need to solve 1. As part of the settlement for a class action lawsuit, Hoxworth Corporation must provide sufficient cash to make the following annual payments (in thousands of dollars): Year Payment 1 190 2 215 3 240 4 285 5 315 6 460 The annual payments must be made at the beginning of each year. The judge will approve an amount that, along with earnings on its investment, will cover the annual payments. Investment of the funds will be limited to savings (at 4% annually) and government securities, at prices and rates currently quoted in The Wall Street…
- A trust officer at the Blacksburg National Bank needs to determine how to invest $100,000 in the following collection of bonds to maximize the total annual return (before tax). Bond Annual Return Maturity Risk Tax-Free A 9.5% Long High Yes B 8.0% Short Low Yes C 9.0% Long Low No D 9.0% Long High Yes E 9.0% Short High No The officer wants to invest as least 50% of the money in short-term issues and no more than 50% in high-risk issues. At least 30% of the funds should go in tax-free investments, and at least 40% of the total annual return should be tax free. Suppose the decision variable represents the amount of money invested in bond for . Formulate a linear programming (LP) model to solve the optimal strategy. 1. Write down the constraint using the defined decision variables requiring “invest as least 50% of the money in short-term issues”. 2. Write down the constraint using the defined decision…A trust officer at the Blacksburg National Bank needs to determine how to invest $150,000 in the following collection of bonds to maximize the annual return. Bond Annual Return Maturity Risk Tax Free A 9.5% Long High Yes B 8.0% Short Low Yes C 9.0% Long Low No D 9.0% Long High Yes E 9.0% Short High No The officer wants to invest at least 40% of the money in short-term issues and no more than 20% in high-risk issues. At least 25% of the funds should go in tax-free investments, and at least 45% of the total annual return should be tax free. Formulate the LP model for this problem. Create the spreadsheet model and use Solver to solve the problem. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Risk management in banking is theoretically defined as “the logical development and execution of a plan to deal with potential losses”. Usually, the focus of the risk management practices in the banking industry is to manage an institution's exposure to losses or risk and to protect the value of its assets. Discuss the risk management for changing interest rates, asset-liability management and duration techniques for the banks, with necessary details.