Stock Index Futures Prices Essay Example | Topics and Well Written Essays - 2000 words

Stock Index Futures Prices - Essay Example Arbitrage is also characterised as the simultaneous buying and selling of stocks in two separate financial markets with the intention of making profits generated by the difference between the buying and the selling prices of a commodity(Sackman, and Coltman 1996, 25). The carry cost can also be described as the interest expense paid by the investor to hold on to the commodity purchased in the futures market until the maturity date of the futures contract(Bjrk 2004, 1). Arbitrage will be further discussed below. Many investors prefer to funnel their scarce money resources into a cash and carry arbitrage contract. Their real goal would probably be to invest in two securities that are differently priced in the market. Later, the stock or futures prices of both commodities will correct themselves by either decreasing or increasing. This movement of prices would cause a profit on one commodity and a loss on the other commodity. Both these commodities will smoothen out resulting to the avoidance or decrease of probable future losses. The commodities where arbitrage can be used include sugar, gold, silver, coffee, oil, U.S. dollar currency, European dollar currency, Japanese Yen, French Franc, and other currencies (Scobie, Buckley, and Fox 1998, 8) In addition, the arbitrage investor may generate profits from investments if he or she invests in a security or in the futures contracts. The investor would then profit when the amount of the of the commodity plus the added cost of carrying is less than the projected commodities futures prices. One clear advantage of using arbitrage in the commodities futures market is that the investors can sell a commodity like the United States dollar today and then buy the same foreign currency four days after the currency purchase date. On the other hand, this is not possible in the real world. The real world transaction is characterised by a sales person turning over to the buyer the car, house, shirt, or computer game the moment when he or she pays for the items bought. Only when the sales price is higher than the investment price will the investor harvest the fruits from his or her arbitrage investment. In terms of the oil industry, "The oil industry, more than other energy sectors, is globa l in its character and operations. The geographical concentration of reserves and the vital role of oil in modern society has made it the principal commodity in international trade" (Haugland, Bergesen, and Roland 1998, 54) Evidently, the arbitrage investor may generate profits from investments if he or she invests in a security or in the futures contracts. Likewise, FRA influences prices. The currency exchange rate of the Eurodollar futures and American dollar Foreign Rate Agreements (FRA) high frequency data clearly indicates that the countless arbitrage opportunities are linked to the presence of stale FRA commodity prices as well as the oscillatory behavior of FRA quotes. And, Inter -market information flows are found to be of much shorter duration than previously reported with the futures market playing the dominant role in the information transmission process in the shorter -dated maturities. Many investors inject their money in short term interest rate futures and forward rate

International Business - International Market Case Study

International Business - International Market - Case Study Example It will investigate the current business strategies used by the company to conquer international markets, licensing and franchising, market strategies and ownership factors. Dell Inc. is an American computer hardware company which is based in Texas, U.S. The company manufactures, supports, develops and sells a wide variety of products and services including; PCs, data storage devices, network switches, software, computer peripherals etc. Dell Inc. is one of the biggest companies in the world but it has currently encountered a lot of competition from other players in the industry including IBM and HP. By the end of 2006, the company had an employee capacity of 78,700 throughout its branches all over the world. The company is owned by Michael Dell who, in 1984 while being a university student, founded the company in his dorm room. The company is currently a wholly owned subsidiary of Dell Computer Corporation After deciding to enter oversees market a variety of options were open to the company. These options vary with cost, risk and the degree of control which can be exercised over them in terms of security. Dell Inc. uses the following two methods of international marketing especially in some countries, such as those in Europe where the countries have developed infrastructure, organized import duty regulations etc. But in developing countries where level of economy is low, the company uses the direct method of exporting. Exporting Exporting is the direct sale of domestically produced goods in another country and does not require that the goods be produced in the target country. An example of this kind of marketing is counter trade. Counter trade is the expansion of operations in markets where competition is less but currency based exchange is not possible (Hollensen, 2004). Direct method In this method, DELL Inc. may agree to build a plant in a certain country and either assembles or manufactures their products and then operates as a full entity in the target country. An example of this method of trading is the barter trade. Direct methods have the following disadvantages i. It is difficult to set price and service quality ii. 'Dumping' may occur since it is not covered by GATT iii. Inconsistency in specifications and delivery iv. Quality may not be of international standards becoming so costly to the customer and trader. Indirect method The method of marketing does not require that the company invests in production facilities in the country and therefore, it is cheaper. The only costs that will be incurred are the marketing, transport and government expenses. This kind of marketing require full corporation of the following players; exporter which will be in this sense Dell Inc., importer in the target country, transport agents and the government trade officers. This is the marketing of goods produced in one country into another. In this case, there is no direct manufacturing in the intended country but significant investments in marketing are required. DELL Inc. can therefore manufacture their products in either Europe or Africa and export them directly to these countries. The advantages for this method are; production is home based hence less risky, gives an opportunity to learn markets abroad, potential risks of operating abroad are minimized. The only disadvantage of this method is that the company is at the merc ies of unscrupulous agents who make more profit than the company itself. Suitability of

Exchange Rate Policies Essay Example | Topics and Well Written Essays - 250 words

Exchange Rate Policies - Essay Example Above balance of trade in favor of China says a lot about the comparative advantage that China has in a vast array of goods. Moreover, the pertinent point is that China has successfully tilted the advantage in its favor through a managed exchange rate regime. It is of no surprise that China has accumulated over $3trillion in its reserve through this comparative advantage in trade. A couple of years back, China had pegged its currency Yuan at about 8.28/dollar and that remained at that level fairly for a long time. China transited to a ‘managed float’ in 2005 but till date it has refrained from ‘free floating’ Yuan. China does so because it does not want to see its currency appreciate against dollar. In doing so, China may lose the comparative advantage that it has gained across a wide range of goods. The U.S. is passing through a dire recession and unemployment rate continues to hover around 9 percent for last several quarters. There is no denying to the fact that the U.S. industries are at great loss so far comparative advantage is concerned. That is why economists like Krugman (2011) strongly advocates that a weak dollar is in the interest of U.S. to protect its producers. That is also a way to eliminate the U.S. trade gap with China providing a level playing field to the U.S.

Health Ethic Essay Example | Topics and Well Written Essays - 3000 words

Health Ethic - Essay Example 1). In this principle, it takes into account the standardized benchmarks that must be maintained in order to secure the health welfare of patients seeking medical attention. The code basically establishes the kind of relationship shared by patients and their health providers, where the former group is considered inferior compared to superiority exhibited by medically-educated practitioners. Hence, there is a one-sided dependence in such type of association. In current times, there is a shift in the focus of health care from solely treatment provisions to health care promotion and education--there is an integrated transfer of power from health providers to consumers. Where once the medical practitioners hold the sole control on the direction of their clients’ overall care, recent developments account for a more shared responsibility between the two parties involved in health care. Bearing the illustrated changes in mind, there is a general assumption that concepts in medical et hical conduct is not absolute in every situation, including the core ethical principles that govern the medical practice. The paper conducts a case evaluation related to the requested act of withholding the full disclosure medical information by a patient towards biologic relatives, and ethical principles regulating the practitioners’ actions in the performance of such duty. Specifically, this seeks to clarify contradictions in professional limitations of practitioners and extent to which patients can exercise their ethical rights against the moral code of conduct maintained by health providers. Ethical Dilemma: A Case Point Case 1 Mrs M has been having some strange symptoms which have been diagnosed as early symptoms of multiple sclerosis. She realizes she could be unaffected by the disease for some time and so has asked her GP not to tell anyone, even her family. Mr M and their three children are also the GP's patients. The GP is torn by Mrs M's decision because she feels i t would be better if the family knew now rather than finding out later. Mrs M wants to keep this secret because "I don't want them to start treating me differently. I want to look after my family for as long as I can before they start looking after me." Ethics is a complex concept that encompasses more than the networking tenets of what is morally right and wrong. Medical ethics, as identified by Flight (2004), is a definitive set of values that guide the practice of medical practitioners, incorporating a variety of ethical theories to provide basis for conflict resolutions and updates on practical health issues in clinical and community health settings. Basic in almost all types of professional ethics is the presentation of the four core approaches in ethical performance: â€Å"autonomy (freedom to choose), nonmaleficence (do no harm), beneficence (do what is good), justice† (Ashcroft, et al., 2007, p. 4). In one way or another, these principles interact with one another to influence the procedures by which the medical practitioners perform their duties in work environment. In account with the case presented above, a couple of values seemed to be in conflict during the adherence of professional code in ethics. As listed above, autonomy is the exercise of the liberty to choose. In clinical settings, patients are given options to choose among the treatment alternatives available to them. In application, Mrs. M had reserved her right to

The use of the x ray machine in the medical field. And how it was Research Paper

The use of the x ray machine in the medical field. And how it was invented and how far it has come (technology wise) and also it - Research Paper Example The discovery was actually accidental. The scientist found that invisible rays were emitted from a cathode ray tube and that these could penetrate wood and also paper. These rays were able to create a glow on a screen that was several years yards away. The glow was fluorescent. The screen that was observed was barium platinocyanide screen (Assmus, 10). The tube generating X-rays, the cathode rays was Crookes tube (Assmus, 10). The scientist made use of these properties to study the structure of bone of human hand. Several years after discovery of these rays, actual X-ray machines were invented. In 1900, it was discovered that radium rays are actually dangerous to skin. Radiology began to emerge as one of the medical specialities in 1900. Skill, the technical know-how and interpretation of image improved significantly (Linton, 27) X-rays are basically electromagnetic waves and their behavior is similar to light rays (Dendy, 48). However, their wavelengths are short. One useful propert y of the X-rays is, when the rays are directed towards a target that is of low density, they pass through the target uninterrupted. In case the target is of high density, like that of parts of human beings, the X-rays either get absorbed or are reflected. This occurs because of very less space between adjacent atoms in high density targets, which do not allow short waves to pass through. When the X-rays pass through completely through the target like in case of flesh, dark areas are seen on the screen. When they are blocked by high density targets like bones, they appear as light areas (Assmus, 14). It was Roentgen who discovered that X-rays basically originate from the tube at a point where the cathode rays strike the glass and then disseminate (Assmus, 14). He found that the origin point of X-rays moves as the rays coming from cathode are moved by a magnetic field. The X-rays however, are insensitive to magnet. Based on these findings, Roentgen concluded that X-rays are distinct f rom the rays emerging from the cathode, the cathode rays (Assmus, 14). "Roentgen justified calling the new phenomena rays because of the shadowy pictures they produce: bones in a hand, a wire wrapped around a bobbin, weights in a box, a compass card and needle hidden away in a metal case, the inhomogeneity of a metal" (Assmus, 14). Two years after Roentgen's discovery, which was basically radiation secondary to artificial ionization, a French scientist by name Henri Becquerel, discovered natural ionizing radiation from certain types of rocks. The radiation rays were similar to X-rays by Roentgen. The rocks were later refined by his colleagues Marie Curie and Pierre Curie to deliver radioactive substances radium, uranium and polonium. Radium is now being used to treat cancers (Linton, 26). Roentgen won Nobel Prize for his discovery in 1901. That was the first Nobel proze in Physics ever (Linton, 28). William Coolidge from General Electric Laboratories developed cathode X-ray tube tha t was an improved version and was hot. The X-ray machine was shielded suitably to prevent scattering of radiation that harmed the technicians. Thus, X-rays emerged from the tubes, known as Coolidge's tubes, through a lead shielded aperture. This method of exposure to X-rays allowed patients to be placed within a beam of X-rays and at the same time allowed others to be kept away from the beam. A further advancement in this method of X-ray exposure

Mktg Essay Example | Topics and Well Written Essays - 500 words - 1

Mktg - Essay Example use of recycled material is a strategy that is environmentally friendly because it reduces the need to use natural resources such as petroleum for packaging purposes. Another environmentally friendly packaging strategy is to reduce the amount of packaging material used. Companies can use environmentally friendly raw materials in their packaging process. Firm can also utilize reusable containers. Packaging specifications determined by product density encourage shippers to tender loads in densities that make the best use of the equipment’s weight and volume capabilities. Carrier specifications for protective packaging reduce the likelihood of damage to products while they are being carried. A principle that I found surprising out of the 10 material handling principles discussed in the chapter is the life cycle cost principle. I did not realize that companies have to pay close attention to the useful life of the equipment used for packaging. A second principle that I found surprising was the automation principle. To me automation was a technique that was only used for production purposes. In a fragmented logistic structure logistic activities are managed in multiple departments throughout an organization. A unified logistic structure is different because the logistic functions are handled by a single department. The unified logistic structure is better positioned than the fragmented structure to achieve coordination among the various activities. Relevancy can be facilitated by developing mutually beneficial relationships with key customers. Responsiveness reflects the degree to which an organization can accommodate unique or unplanned customer requests. Flexibility is predicated on avoiding early commitment to an irreversible course of action. One asset related productivity concern involves space utilization, or the percent of available space that is actually being used. Excess capacity can be unproductive because it may result in the purchase of additional

Organization within its environment Essay Example for Free

Organization within its environment Essay Organization exist as part of a wider environment Or part of society and as such their influence by the environment in which their operate. It is usual to consider the environment through form of analysis known as pest analysis which has 4 main categories ; political this looks at the government involvement through legislation that they provide outlining the legal frame work within which every business must exist and taxation policy which are dependent on company success and therefore their profit ECONOMIC Factors affecting the financial functioning of the organization and value of money in the economy which will affect the ability to purchase as well as produce goods n services . It looks at the potential growth in a economy and how the value of money changes as well as trade SOCIAL This refers to factors affecting the population and supply of labour by looking at the influences on individuals whether their are employees or customers . It will look at the taste n preferences of plp in society, culture of plp the profile of the workin population nn the number of plp in the job market which influences expectations and behaviour at work TECHNOLOGICAL Factors affecting the processes of production such as changes in computer technology and communication and new manufacturing processes MANAGEMENT FUNCTIONS Management involves creating and internal environment in a business which makes use of the inputs or factors of production to be transformed tp create outputs of goods and services .it is therefore the responsibility of management to create conditions that allows people to perform to their best ability to be efficient and effective. MANAGEMENT is able to do this through their basic functions of planning organising directing amd controlling the organizations resources in order to achieve the goals of the company MANAGEMENT THEORY Organisations considered to be employee oriented so they are likely to be  more productive and as a result become more profitable. Similarly employees who are mistreated are more likely to reject the policies of the organization. Based on this o.b helps to analyze how and why employees behave in a particular way and the schools of management thought provide different theory used for the of management. Each school of thought IS based on different assumptions about people and the organization for which they work and understanding of the developments of management thinking will help to understand the process of management that offer good employee benefits and have proper working conditions.