A company has derivatives transactions with Banks A- B- and C that are.docx

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A company has derivatives transactions with Banks A, B, and C that are worth +$20 million, -$15 million, and -$25 million, respectively, to the company. How much margin or collateral does the company have to provide in each of the following two situations? a)The transactions are cleared bilaterally and are subject to one-way collateral agreements where the company posts variation margin but no initial margin. The banks do not have to post collateral. b)The transactions are cleared centrally through the same CCP and the CCP requires a total initial margin of $10 million. Solution If the transactions are cleared bilaterally, the company has to provide collateral to Banks A, B, and C of (in millions of dollars) 0, 15, and 25, respectively. The total collateral required is $40 million. If the transactions are cleared centrally they are netted against each other and the companyâ€™s total variation margin (in millions of dollars) is â€“20 + 15 + 25 or $20 million in total. The total margin required (including the initial margin) is therefore $30 million. .

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A concise answer would suffice. Thank you. short Videos about special relativity and answer the following questions suggested by the films. t. th the Michelson-Morley experiment, the motion of the earth through the ether was supposed to be detected via a change in the interference pattern produced by the interferometer when the apparatus was rotated. However, no change was observed. Why did they expect to see a change, and why was no change seen? Solution The basic aim of the michelson-morley experiment was to verify the existance of ether, a medium assumed to be present in our enviroment which is responsible for the propogation of light. For this two light one perpendicular to the medium and one parallel to medium were made to travel and then interfere. since both would travel different amount in the ether they would have phase difference and that would cause shift in the interference pattern. But no as such result was observed. The main reason was there is no such thing as ether, light is a electromagnetic wave which requires no medium for its propogation. And also without ether there would be no special frame of reference against which different observer can measure the motion so it was deduced ( by Einstein) that speed of light remain constant in all inertial frame. .

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A company uses a weighted average perpetual inventory system. August 2: 10 units were purchased at $12 per unit. August 18: 15 units were purchased at $15 per unit. August 29: 20 units were sold. August 31: 14 units were purchased at $16 per unit. What is the per-unit value of ending inventory on August 31? Solution Weighted Average Cost of Stock of 25 Units: (0.40 x 12 ) + (0.60 x 15) = $13.80 Unit Sold: 20, Unsold 5 Aug31: Total Units in Stock: 5 + 14 = 19 Weighted Average Cost = (0.2632 x 13.80) + (0.7368 x 16) = $15.42 So, the Correct Option is $15.42 .

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A cockroach of mass m lies on the rim of a uniform disk of mass 5.00 m that can rotate freely about its center like a merry-go-round. Initially the cockroach and disk rotate together with an angular velocity of 0.410 rad/s. Then the cockroach walks halfway to the center of the disk. (a) What then is the angular velocity of the cockroach-disk system? (b) What is the ratio K / K 0 of the new kinetic energy of the system to its initial kinetic energy? Solution let m1 = m m2 = 5*m wi = 0.41 rad/s let R is the radius of the disk a) Apply conservation of angular momentum = initial angular momenum (m1*(R/2)^2 + 0.5*m2*R^2)*wf = (m1*R^2 + 0.5*m2*R^2)*wi (m*(R/2)^2 + 0.5*5*m*R^2)*wf = (m*R^2 + 0.5*0.5*m*R^2)*wi m*R^2*(1/4 + 2.5)*wf = m*R^2*(1 + 2.5)*wi 2.75*wf = 3.5*wi => wf = (3.5/2.75)*wi = (3.5/2.75)*0.41 = 0.522 rad/s b) K = (1/2)*If*wf^2 = (1/2)*(m1*(R/2)^2 + 0.5*m2*R^2)*wf^2 = (1/2)*(m*R^2/4 + 0.5*5*m*R^2)*wf^2 = (1/2)*m*R^2*(2.75)*wf^2 Ko = (1/2)*Ii*wi^2 = (1/2)*(m1*R^2 + 0.5*m2*R^2)*wi^2 = (1/2)*(m*R^2 + 0.5*5*m*R^2)*wi^2 = (1/2)*m*R^2*(3.5)*wi^2 K/Ko = (2.75)*wf^2/(3.5*wi^2) = 2.75*0.522^2/(3.5*0.41^2) = 1.27 .

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On January 1, 2011, Mulcahy Manufacturing Inc., a newly formed corporation, issued 1,000 shares of common stock in exchange for $135,600 cash. No other shares were issued during 2011, and no shares were repurchased by the corporation. On November 1, 2011, the corporation Solution Mulcahy Manufacturing Inc Stock holder equity, Dec, 31 2011 Particulars Amount Capital stock: Common stock $135,600 Net income $25,300 ____________ Total Stock holder equity $160,900 _____________ Note: corporation major stock holder sold to another stock holder, ownership change but corporation stock remain unchanged. Capital gain to particular stock holder not to corporation. .

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