The payoff to the holder of a long FRA on 90-day LIBOR with a fixed rate of 8.75 percent, a notional amount of $20 million if the underlying is 9 percent at expiration is
a. $12,500
b. –$12,500
c. –$12,225
d. $12,225
e. –$48,900
d
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What is the advantage of using information provided by demographic data market research
firms rather than government sources? A) The information obtained from government sources is less accurate than that from market research firms. B) Information from government sources is subjective and biased. C) Market research firms can provide more detailed information than government sources. D) Market research firms provide data for free, unlike government research sources.
Consider a corner point to a linear programming problem, which lies at the intersection of the following two constraints:
6X1 + 15X2 < 390 2X1 + X2 < 50 Which of the following statements about the corner point is TRUE? A) X1 < 21 B) X1 > 25 C) X1 < 10 D) X1 > 17