by Dan | Dec 16, 2020 | Finance
FDIC was very close to Insolvency during the Financial Crisis. Given that FDIC insures trillions of dollars in deposits, and has reserves totaling only $50 billion, comment on the following four ideas, and analyze its implications. What metrics should we use in the...
by Dan | Dec 16, 2020 | Finance
Efficient Capital Markets: What does ECM mean? What are the implications of Market Efficiency for the behavior of security prices? Do you think Global Capital Markets are Efficient? Explain the historical record of Efficiency on these markets: First market;Second...
by Dan | Dec 15, 2020 | Finance
Review the following websites and do additional research to learn how choices madetoday will create their future. The goal is to discover the gaps between your expectationsand the real world. By learning how to close those gaps, you can create a detailed planto...
by Dan | Dec 13, 2020 | Finance
UberZ Co is considering whether it should expand its self-driving cars division, or completely shut it down. To make this decision, the company paid McLindsay Co., a large consulting company, a fee of $20 million to evaluate the program, but they will refund half of...
by Dan | Dec 7, 2020 | Finance
A home buyer borrowed a 5/1 ARM (30 year amortization) with an annual interest rate of 3% fixed for the first five years. The amount of the loan is $600,000. (15 points)Compute her monthly mortgage payment for the first five years.In the first month, how much is she...
by Dan | Dec 6, 2020 | Finance
Construct an arbitrage example involving an asset that can be sold short and use it to explain the cost of carry model for pricing futures.Why do higher interest rates lead to higher call option prices but lower put option prices?Suppose a European put price exceeds...
