What is the concept of notional depreciation? (a) Define primary deficit. (b) What does it signify? Under what conditions would a firm not shut down even if it was incurring losses? What are any two causes of depreciation? What is the meaning of International Equilibrium?
On the other hand, implicit opportunity costs are the costs that are notional or implied in nature. They are the costs of not choosing an available option. For example, the inherent opportunity cost of setting up a production unit is the loss of opportunity to invest the same amount of mone...
Cost of a Swaption The buyer of a swap option pays a premium, which is the cost of a swaption. The amount of premium depends on the structure of the swap, especially on the difference between the swap interest rate and the current interest rate. Moreover, the premium also depends upon t...
In a swap, one investor agrees to pay acounterpartya fixed percentage of a notional amount in exchange for a floating rate payment or payments. The change in inflation over the course of the contract will determine the value of the installment. The calculation between the fixed and floating va...
Briefly discuss the meaning and significance of each of the following terms: SWOT analysis Core competence Business Analysis: Business analysis aids business stakeholders to make prudent business and investment decisions. It generally involves accounting analysis, fina...
When dealing with options, what is the meaning of the following terms? a. 'time value' b. 'strike price' c. 'in the money' Options: Options refer to the agreement between two parties under which the seller provides the right to the option buyer ...