Free CMA Mock Exam – Practice Online Confidently

Multichannel marketing 

AA Company has purchased one share of QQ Company common stock and one put option. It has alsosold one call option. The options are written on one share of QQ Company common stock and havethe same maturity date and exercise price. The exercise price ($40) is the same as the share price.Moreover, the options are exercisable only at the expiration date. Assuming the present value of theexercise price is $36 and the value of the call is $4.50. the value of the put in accordance with theput-call panty theorem is

An interest swap covers a 3-year period with annual payments on a $1 million notional principalamount. Party X agrees to pay a fixed rate of 8.5% to Party Z, who will in return pay to X a floatingrate equal to the London Interbank Offered Rate (LIBOR) in effect. LIBOR is the rate offered by majorLondon banks on large dollar deposites. The contract is initiated on January 1, Year 1. The firstpayment is due on December 21, Year 1. The following are the floating rates on LIBOR over the 3-year period:Time LIBOR1/1/Year 1 8.00%1/1/Year 2 9.00%1/1/Year 3 9.50%1/1/Year 4 8.50%What is the net payment made to the party that recognized a net gain on the contract?

Which relationship marketing level is appropriate for a low unit profit margin and many customers? 

A market follower is a firm that does not choose to challenge the market leader. This firm must haveits own strategy for maintaining its share of the market. When the firm improves products that arealready on the market and operates in different markets, it is a (n).