23-114 What Should Be the Price of a $5,000,000 Collar

question 41

Multiple Choice

23-114 What should be the price of a $5,000,000 collar if the bank purchases a three-year 6 percent cap and sells a 5 percent floor,if the current (spot) rates are 6 percent?

• A)The bank will receive net $2,010.
• B)The bank will receive net $31,651.
• C)The bank will pay net $31,651.
• D)The bank will pay net $2,010.
• E)price = $0

Comprehend the types of learning in animals and their implications for behavior.

Explain the concept of inclusive fitness and its role in altruistic behaviors.

Distinguish between different social structures in animal communities.

Identify the adaptive advantages and disadvantages of group living.

---

Definitions:

Efficient Allocation

The optimal distribution of resources in an economy, where resources are utilized in a manner that maximizes societal welfare without any wastage.

Rival in Consumption

A characteristic of a good whereby one person's consumption reduces the availability of the good for another person.

Rival in Consumption

A characteristic of a good whereby its consumption by one individual prevents simultaneous consumption by other individuals.

Excludable

An excludable good or service is one where it is possible to prevent people who have not paid for it from having access to it.