You Have Entered into a FRA with a Notional Amount

question 4

Multiple Choice

You have entered into a FRA with a notional amount of $100,000,000 which says that if 1-year LIBOR is greater than 5% then the bank will pay you and vice versa if the rate is less than 5%.At the end of the contract you find that 1-year LIBOR is 4.5%.What is the appropriate cash flow?

• A) the bank pays you $500,000
• B) you pay the bank $500,000
• C) the bank pays you 478,469
• D) you pay the bank 478,469

Comprehend the concept and importance of source credibility in marketing.

Recognize the mere exposure effect and its significance in consumer preferences.

Understand the strategic application of fear in advertising messages.

Grasp the concept of comparative advertising and its strategic uses.

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Definitions:

Demographic Variables

Characteristics of populations, such as age, race, gender, income, and education, used in research and marketing to segment and analyze populations.

Age

A demographic factor referring to the length of time that an individual or entity has been alive or in existence, often considered in marketing, social studies, and human resource management.

Income

The monetary payment received for goods or services, or from other sources, as rents or investments.

Communication

The process of exchanging information or ideas through various means, including speech, writing, visual images, or digital platforms.