Discuss The Agency Problem. What Initiatives Can Help To Resolve This Problem?
finance
Description
Q.1 Theory Week 1: Answer ONE of the following: 5x1=5 Marks
(a) Discuss the agency problem. What initiatives can help to resolve this problem? OR
(b) Mention the theories in relation to MNC’s growth and expansion. Elaborate one of them by
explaining how this serves the expansion purpose
Q.2 Financial Math Week 2: Answer any ONE of the following: 5x1=5 Marks
(a) You are planning to pay off your current car. You expect to pay $8500 per year at the end of
each year from year 2 to year 5 (inclusive). What is the present value of this annuity today, if the
annual interest rate is 6%?
Q. 3 Financial Math Week 3 and 4: COMPULSORY
You are the forex control officer in the foreign exchange department of Bank Monash (based in
Melbourne, Australia). You have been given three tasks to accomplish.
You need write a put option for one of your client ABC Ltd. The option involves Canadian Dollar
($CAD) and Australian Dollar ($AUD). Your bank charges a premium of $AUD 0.05 for each unit
of $CAD traded via put option contract. The prediction is, the spot rate can be $ 1CAD = $AUD 1.23
around the time of option’s execution date (expiry date). What strike rate you should put to
prevent any loss if the contract is executed?
Instruction Files
FORMULASHEET.pdf
127.1 KB
MiniTest1WrittenQuestions.pdf
132.1 KB
