What is difference between the spot and the forward markets

Assignment Help Finance Basics
Reference no: EM13332897

What is the difference between the spot and the forward markets? Why do investors or business managers need the forward markets?

Reference no: EM13332897

Questions Cloud

Was westerns allocation ethical : Explain the tax advantage of allocating too much to the building and too little to the land.Was Western's allocation ethical? If so, state why. If not, state why not. Identify who was harmed.
Find the struck balls velocity after the collision : A billiard ball moving at 6.00 m/s strikes a stationary ball of the same mass. find the struck ball's velocity after the collision
How is equilibrium achieved in this economy : Using the Keynesian cross model, draw a graph to illustrate and explain what will happen in an economy when planned aggregate expenditures are greater than real GDP (i.e., A.E. > Y). How is equilibrium achieved in this economy?
Explain only london dispersion forces must be overcome : Choose the selection which correctly identifies the forces which must be overcome to convert NH3 from a liquid to a gas. a) Only London dispersion forces must be overcome. b) Only dipole-dipole forces must be overcome
What is difference between the spot and the forward markets : What is the difference between the spot and the forward markets. Why do investors or business managers need the forward markets.
What is the person expected utility : A person has an expected utility function of the form U(w)=w^1/2.He has an initial wealth of $25.He also has a lottery ticket that will be worth $75 with probability 1/2 and will be worth $0 with probability 1/2.
What is the difference between speculation and hedging : What is the difference between speculation and hedging. Why do business managers use hedging strategies. Des hedging reduce company risk How
Determine the charge on each ball : Two identical, small insulating balls are suspended by separate 0.23-m threads that are attached to a common point on the ceiling. Determine the charge on each ball
How will the ppaca affect prescription drug costs : the government could take to encourage companies to conduct research and development and still control the costs of pharmaceuticals? How is it done in other nations

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the current pe ratio for each company

Assume that all earnings are paid as dividends and that both firms require a 14 percent rate of return.

  Calculate the afn

Assuming that sales growth is expected to be 20% this year, calculate the AFN.

  Explaining fiscal and budgetary challenges

Help me out to explain the fiscal and budgetary challenges faced by higher education institutions?

  What was the average annual growth rate

At the end of the year 2002, the firm paid a dividend of $1.35. At year-end 2009, it paid a dividend of $1.84. What was the average annual growth rate of dividends for this firm?

  What responsibility does it carry

What is the role of the Financial Analyst in a large organization? What responsibility does it carry? Are there ethical implications?

  Wide differences of opinion exist on how many ratios should

The study of annual reports reviewed in this course indicates that wide differences of opinion exist on how many ratios should be computed and by whom. Do you agree or disagree? Why?

  What is the investments profitability index

The discount rate that your firm uses for projects of this type is 13.25%. What is the investments profitability index?

  Question on international finance

Frizzell Corporation has 1,000,000 euros as receivables due in thirty days, and is certain that the euro will depreciate substantially over time. Suppose that the firm is correct,

  Evaluate the project on a pre-tax basis

what is the NPV of this project, assuming that you should evaluate the project on a pre-tax basis?

  What is the current yield on pks bonds

PK Software has 9 percent coupon bonds on the market with 25 years to maturity. The bonds make semiannual payments and currently sell for 111.75 percent of par.

  What is the net spread earned on this investment

A bank purchases a six month 1 million euro dollar deposit at an interest rate of 6.5 percent per year. It invests the funds in a six-month Swedish krona bond paying 7.5 percent per year. The current spot rate of U.S. dollars for Swedish krona is ..

  How would the alleged manipulation lead to losses

How would the alleged manipulation lead to losses for Fannie Mae? Why wouldn't any losses on swaps be offset by gains on the mortgages Fannie Mae was hedging?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd