Question
1.An American firm is under commitment to pay interests of Can$ 1010000 and Can$ 705000 on 31st July and 30th September separately. The Firm is
1.An American firm is under commitment to pay interests of Can$ 1010000 and Can$
705000 on 31st July and 30th September separately. The Firm is hazard disinclined
furthermore, its arrangement is to fence the dangers implied in all unfamiliar money exchanges.
The Finance Manager of the firm is considering supporting the danger thinking about two
strategies for example fixed forward or choice agreements.
It is presently June 30. Following citations in regards to paces of trade, US$ per Can$,
from the company$s bank were acquired:
Spot 1 Month Forward 3 Months Forward
0.9284-0.9288 0.9301 0.9356
Cost for a Can$/US$ choice on a U.S. stock trade (pennies per Can$, payable on
acquisition of the choice, contract size Can$ 50000) are as per the following:
Strike Price Calls Puts
(US$/Can$) July Sept. July Sept.
0.93 1.56 2.56 0.88 1.75
0.94 1.02 NA
0.95 0.65 1.64 1.92 2.34
As indicated by the idea of account supervisor if choices are to be utilized, one
month choice ought to be purchased at a strike cost of 94 pennies and multi month
alternative at a strike cost of 95 pennies and for the rest of by the
alternatives the firm would bear the actual danger. For this, it would use forward rate as
the best gauge of spot. Exchange costs are overlooked.
Suggest, which of the over two techniques would be proper for the
American firm to support its unfamiliar trade hazard on the two interest installments.
2. Green commotion was started in which year__________.
(a) 1987
(b) 1967
(c) 1990
(d) 1976
3.___________aims at fusing our public economy with that of the world.
(a) Globalization
(b) Liberalization
(c) Privatization
(d) Divestment
4.___________is the cycle by which point of convergence of gravity of the economy shifts from agribusiness to
industry.
(a) Privatization
(b) Industrialization
(c) Divestment
(d) Urbanization
5. Which of these is an objective of present day plan?
(a) Sustainable turn of events
(b) Gainful work
(c) Optimum use of resources
(d) All of these
6. As per IDRA, 1951, restricted degree industry is one which has theory upto________crore in
plant and equipment notwithstanding region and building.
(a) 1
(b) 2
(c) 3
(d) 5
7. In the event that there ought to emerge an event of endeavors busy with conveying of organizations, a little endeavor is one where
theory in__________is more than 10 lakhs yet under 2 crores".
(a) Plant and device
(b) Land and building
(c) Gear
(d) None of these
8. The condition of resolute deficiency and breaking down of complete resources is known as:
(a) Shut down point
(b) Mechanical turmoil
(c) Insolvency
(d) None of these
9. Which of these isn't a justification present day contamination?
(a) Fraudulent technique
(b) Faulty organization
(c) Over strength of agents
(d) Strikes and lockouts
10.____________was set up for recuperation of cleared out units.
(a) CSO
(b) BIFR
(c) ICICI
(d) NSSO
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