2)INTEREST RATE CAPS Northbrook Bank purchases a four-year cap for a fee of 3 percent of notional principal valued at $100 million, with an interest rate ceiling of 9 percent and LIBOR as the index representing the market interest rate. Assume that LIBOR is expected to be 8 percent, 10 percent, 12 percent, and 13 percent (respectively) at the end of each of the next four years. a)Determine the initial fee paid, and also determine the expected payments to be received by Northbrook if LIBOR moves as forecasted. b)Determine the dollar amount to be received (or paid) by the seller of the interest rate cap based on the assumed forecasts of LIBOR.

If his parents cannot alex with college, and two of his scholarships will be awarded to other students if he does not accept them immediately, which is the best option for him?

Galwaysc electronics makes two products. model a requires component a and component c. model b requires component b and component c. new versions of both models are released each year with updated versions of all components. all components are sourced overseas, and abc contracts annually for a quantity of each component before seeing that year’s demand. components are only assembled into finished products once demand for each model is known. for the coming year, alwaysc’s purchasing manner has proposed ordering 500,000 units of component a, 630,000 of component b, and 1,000,000 units of component c. her boss has asked why she has recommended purchasing so much of components a and b when alwaysc will not have enough of component c to fully use all of the inventory of a and b. what factors might the purchasing manager cite to explain her recommended order? explain your reasoning.

What is a sort of auction for stocks in which traders verbally submit their offers?