An investor borrows a principal of £1,000,000 and agrees to an interest-only repayment at a rate of 5% p.a., in equal quarterly installments, paid in arrears for 10 years. After 10 years the principal is paid back with a lump payment. The investor uses part of the principal to buy £200,000 nominal of 10-year government bonds, paying semi-annual coupons at a rate of 4% p.a. and producing a yield of 3.5% p.a. effective. Bonds are redeemed at par after 10 years. The remaining portion of the principal (denoted by P) is used to purchase properties that produce annual rental income at a rate of 4% of their initial value P for the first 5 years and, subsequently, at a rate of 5% of their initial value P. Rent is payable monthly in advance.

Answers

Answer 1

The investment scenario involves loan repayment with interest-only quarterly installments for 10 years, investment in government bonds with semi-annual coupon payments, and investment in properties with rental income at different rates.

Let's break down the information provided and calculate the different components of the investment scenario.

1. Loan Repayment:

The investor borrows £1,000,000 and agrees to an interest-only repayment at a rate of 5% p.a. in equal quarterly installments, paid in arrears for 10 years. This means that the investor will pay quarterly interest payments of (1,000,000 * 5% / 4) = £12,500. At the end of the 10 years, the principal of £1,000,000 will be paid back in a lump sum.

2. Government Bonds:

The investor uses part of the principal (£200,000) to buy £200,000 nominal of 10-year government bonds. These bonds pay semi-annual coupons at a rate of 4% p.a., producing a yield of 3.5% p.a. effective. The bonds are redeemed at par after 10 years. To calculate the semi-annual coupon payments, we use the formula:

Coupon Payment = Nominal Value * Coupon Rate / 2

For the government bonds, the semi-annual coupon payment is:

Coupon Payment = £200,000 * 4% / 2 = £4,000

3. Rental Income from Properties:

The remaining portion of the principal (denoted by P) is used to purchase properties that produce annual rental income at a rate of 4% of their initial value for the first 5 years and 5% thereafter. The rent is payable monthly in advance.

To calculate the monthly rental income, we use the formula:

Monthly Rental Income = Initial Value * Rental Rate / 12

For the first 5 years, the monthly rental income is:

Monthly Rental Income = P * 4% / 12

After the first 5 years, the monthly rental income is:

Monthly Rental Income = P * 5% / 12

It's important to note that the initial value of the properties (P) is not explicitly given, so we cannot calculate the exact rental income without that information.

In summary, the investment scenario involves loan repayment with interest-only quarterly installments for 10 years, investment in government bonds with semi-annual coupon payments, and investment in properties with rental income at different rates. The exact rental income calculation requires the initial value of the properties (P), which is not provided in the given information.

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Related Questions

2 pts Value marginal product (VMP) equals O P x MPP. O P/MPP. O PX MFC. O b and c O none of the above

Answers

The correct option for the equation 2 pts Value marginal product (VMP) equals O P x MPP. O P/MPP. O PX MFC. O b and c.

VMP is a financial metric that calculates the estimated value of the output of an additional unit of labor. VMP is used to estimate an employee's or labor force's worth to a company.

The formula for the Value Marginal Product (VMP):

The formula for calculating the value marginal product is VMP = MP x P

where : VMP is the value marginal product:  MP is the marginal product (change in total product produced when an additional unit of labor is added)P is the price of output

Let's assume that a labor force of 3 is producing 50 units of output at a market price of $10. To discover the value marginal product for the fourth worker, we must first determine the marginal product (MP) for each unit of labor input.

The marginal product is 20 when the third worker is added. So, with the inclusion of the fourth worker, the total output becomes 70 (50 + 20), with a marginal product of 10.

Therefore, the value marginal product (VMP) of the fourth labor force member is

VMP = 10 x 10

= $100.

The correct option is b and c.

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Geometry, please answer question ASAP

Geometry, please answer question ASAP

Answers

Answer:

D

Step-by-step explanation:

Add all the numbers around the triangle, the get your answer

I hope its useful

The specifications for a manifold gasket that installs between two engine parts calls for a thickness of 2.500 mm + 020 mm. The standard deviation of the process is estimated to be 0.004 mm. The process is currently operating at a mean thickness of 2.50 mm. (a) What are the upper and lower specification limits for this product? (b) What is the Cp for this process? (c) The purchaser of these parts requires a capability index of 1.50. Is this process capable? Is this process good enough for the supplier? (d) If the process mean were to drift from its setting of 2.500 mm to a new mean of 2.497, would the process still be good enough for the supplier's needs? R

Answers

The upper specification limit is 2.520 mm, and the lower specification limit is 2.480 mm.  The process is not capable according to the purchaser's requirement of a capability index of 1.50.

(a) The upper specification limit (USL) is calculated by adding the process mean (2.500 mm) to the upper tolerance (0.020 mm), resulting in 2.520 mm. The lower specification limit (LSL) is calculated by subtracting the lower tolerance (0.020 mm) from the process mean, resulting in 2.480 mm.

(b) The process capability index (Cp) is calculated by dividing the tolerance width (USL - LSL) by six times the standard deviation. In this case, the tolerance width is 0.040 mm (2.520 mm - 2.480 mm) and the standard deviation is 0.004 mm. Therefore, Cp = 0.040 mm / (6 * 0.004 mm) = 1.25.

(c) The purchaser requires a capability index (Cpk) of 1.50, which measures how well the process meets the specification limits. Since Cp (1.25) is less than the desired Cpk (1.50), the process is not capable according to the purchaser's requirement. It is not good enough for the supplier either, as the Cp is less than the desired level.

(d) If the process mean were to drift to 2.497 mm, the Cp value would remain the same at 1.25. Since the Cp value is still less than the desired Cpk of 1.50, the process would still not be good enough for the supplier's needs, even with the changed process mean.

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Evaluate the expression,
if x = 6, y = 8, and z = 4.
6x - y
N

Evaluate the expression,if x = 6, y = 8, and z = 4.6x - yN

Answers

Replace the letters with their given values:

6(6) - 8 / 4

Do the multiplication:

36-8 / 4

Subtract:

28/4

Divide to get the final answer :7

Answer = 7

Answer:

it’s , 7

Step-by-step explanation:

To evaluate an expression with variables: 1. Substitute the values for the variables. 2. Identify grouping symbols, beginning with the innermost symbols. 3. Determine and apply the rules of exponents to simplify. 4. Evaluate. Evaluate the expression using x = –1 and y=3. (6x4y3) What is the value of the expression?

Solve thi ytem of linear eqarion. Separate the x-and t-hirt value with a comma
2x=96-14y
9x=40-14y

Answers

The solution which we get for the given question is , x = 5/2 and y = 5/4 answer.

Isolating x,

2x = 9x - 14y

2x-9x = 9x-9x -14y

-7x = -14y

-7x/-7 = -14y/-7

x = 2y

Therefore substituting value of x on equation 2,

9(2y) = 40 - 14y

18y = 40 - 14y

18y+14y = 40 -14y+14y

32y = 40

32y/32 = 40/32

y = 5/4

Therefore , x = 10/4 = 5/2

as because x =2y.

An equation is a mathematical statement which equated two value using the equal sign. Eg.) 2x = y

These expressions on either side of the equals sign are referred to as the equation's "left" and "right" sides. The right-hand side of an equation is usually assumed to be zero. The generality will still be there as  because we can balance it by subtracting the right-hand side expression from the expressions on both sides.

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5 times 5 plus 36 equals

Answers

Answer:

61

Step-by-step explanation:

5•5+36

(5)(5)+36

=25+36

=61

5 times 5 + 36

Start with multiplication

25 + 36

61

A piece of wire is 7/8m long broke into two piece one piece is 1/4 m long how long is the other one ?​

Answers

Answer: 5/8m

Step-by-step explanation:

From the question, we are informed that a piece of wire is 7/8m long and broken into two piece. We are further told that one piece is 1/4 m long.

The length of the other piece of wire would be calculated as:

= 7/8 - 1/4

= 7/8 - 2/8

= 5/8m

suppose we flip a fair coin five times and each time it lands heads up. the probability of landing heads up on the next flip is . a. 1 b. .5 c. .75 d. 0

Answers

Probability is simply how likely something is to happen, so the probability of landing heads up on the next flip is 1/2.

How is probability determined?

The probability is obtained by dividing the total number of outcomes by the entire number of potential ways an event may occur. Odds are a separate concept from probability. The probability of an event happening is divided by the probability that it won't, and the result is the odds.

What is probability?

Mathematical explanations of the likelihood that an event will occur or that a statement is true are referred to as probabilities. A value among 0 and 1 represents the likelihood of an event, with 0 generally denoting impossibility and 1 denoting certainty.

P(H)= Probability of getting  head while flipping a coin is 1/2

and,

P(T)= Probability of getting  tail while flipping a coin is 1/2

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What is the most important characteristic of a correlation coefficient?
a. number of variables included
b. absolute value
c. one tailed
d. two tailed

Answers

Answer:

The most important characteristic of a correlation coefficient is the absolute value.

The absolute value of a correlation coefficient represents the strength of the relationship between two variables, regardless of the direction of the relationship. A correlation coefficient can range from -1 to +1, where a value of -1 indicates a perfect negative correlation (i.e., as one variable increases, the other decreases), a value of +1 indicates a perfect positive correlation (i.e., as one variable increases, the other also increases), and a value of 0 indicates no correlation (i.e., there is no relationship between the variables).

The most important characteristic of a correlation coefficient is the absolute value.

The absolute value of the correlation coefficient represents the strength of the relationship between two variables, regardless of its direction. It indicates the degree to which the variables are associated with each other.

By focusing on the absolute value, we can assess the magnitude of the correlation without being influenced by whether it is positive or negative. For example, a correlation coefficient of -0.8 or +0.8 both indicate a strong relationship, while a correlation coefficient of 0 suggests no relationship.

The number of variables included is not a characteristic of the correlation coefficient itself, but rather a consideration in the analysis. One-tailed and two-tailed refer to the type of hypothesis being tested and are relevant in statistical testing. However, the absolute value of the correlation coefficient is crucial in determining the strength of the relationship between variables, making it the most important characteristic to assess in correlation analysis.

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I need help please, WILL GIVE brainliest !!!

I need help please, WILL GIVE brainliest !!!

Answers

Answer:

Statements #1:  <L (congruent sign) <I

Statements #2: <H (congruent sign) <K

Statements #3: GH (congruent sign) MK

Reasons #2: given

Reasons #3: given

Reasons #4: angle angle side

Help me understand how to do it so I can pass?​

Help me understand how to do it so I can pass?

Answers

Answer: Hi there! X = 7 would be your answer

Step-by-step explanation:

Simplify both sides of the equation.

2(3x − 6) = 3(x + 3)

(2) (3x) + (2) (−6)= (3) (x) + (3) (3)

6x + −12 = 3x + 9

6x − 12 = 3x + 9

Subtract 3x from both sides.

6x − 12−3x = 3x + 9−3x

3x − 12 = 9

Add 12 to both sides.

3x − 12+12 = 9+12

3x=21

Divide both sides by 3.

3x/3=21/3

x=7

I hope this helps!!

\( \frak{2( 3x - 6 ) = 3( x + 3 )}\)

\( \: \)

\( \frak{6x - 12 = 3x + 9}\)

\( \: \)

\( \frak{6x - 3x = 9 + 12}\)

\( \: \)

\( \frak{3x = 21}\)

\( \: \)

\( \frak{x = \cancel\frac{21}{3} }\)

\( \: \)

\( \underline{ \boxed{ \bold{ \frak{{ \red{x = 7}}}} }}\)

\( \: \)

hope it helps!:)

Solve the following linear programming problem (LPP) using the Big-M method:

Maximize Z = 4x1 + 3x2
Subject to:
2x1 + x2 ≥ 10
-3x1 + 2x2 ≤ 6
x1 + x2 ≥ 6
x1, x2 ≥ 0

Answers

The optimal solution for the given linear programming problem using the Big-M method is x₁ = 4, x₂ = 2, with a maximum value of Z = 22.

To solve the given linear programming problem using the Big-M method, we first convert it into standard form by introducing slack, surplus, and artificial variables.

The objective function is to maximize Z = 4x₁ + 3x₂. The constraints are 2x₁ + x₂ ≥ 10, -3x₁ + 2x₂ ≤ 6, x₁ + x₂ ≥ 6, and x₁, x₂ ≥ 0.

We introduce slack variables s₁, s₂, and s₃ to convert the inequalities into equalities. The initial Big-M tableau is set up with the coefficients and variables, and the artificial variables are introduced to handle the inequalities. We set a large positive value (M) for the artificial variables' coefficients.

In the first iteration, we choose the most negative coefficient in the Z-row, which is -4 corresponding to x₁. We select the s₂-row as the pivot row since it has the minimum ratio of the RHS value (6) to the coefficient in the pivot column (-3). We perform row operations to make the pivot element 1 and other elements in the pivot column 0.

After multiple iterations, we find that the optimal solution is x₁ = 4, x₂ = 2, with a maximum value of Z = 22. This means that to maximize the objective function, x₁ should be set to 4 and x₂ should be set to 2, resulting in a maximum value of Z as 22." short

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offering brainiest pls HELP!!.
Steven has a bag of 20 pieces of candy. Five are bubble gum, 8 are chocolates, 5 are fruit chews, and the rest are peppermints. If he randomly draws one piece of candy what is the probability that it will be chocolate?

A.

0.4

B.

0.45

C.

0.2

D.

0.8

offering brainiest

Answers

The probability of occurence of chocolate is 0.4 0r 40%. So the option A is the correct one.

What is probability?

Probability refers to the measure or quantification of the likelihood or chance of an event or outcome occurring. It is typically expressed as a numerical value ranging from 0 to 1, where 0 represents an impossible event and 1 represents a certain event.

What is random variable?

In probability theory and statistics, a random variable is a variable whose value is determined by the outcome of a random event or process. It is often denoted by a capital letter, such as X or Y, and it can take on different values with certain probabilities associated with each value.

Based on the given condition, formulate:

8/20=2/5

0.4 or 40%

Therefore option (A) is correct.

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Which system of equations does the graph represent?(i need helpppp)

Which system of equations does the graph represent?(i need helpppp)

Answers

The correct answer is H

Please answer now What is the value of x? Enter your answer, as a decimal, in the box. Enter the numerical value only.

Please answer now What is the value of x? Enter your answer, as a decimal, in the box. Enter the numerical

Answers

Answer:

  67.5 ft

Step-by-step explanation:

You want the length of x=MB in triangle MAB similar to triangle MNP with MN=71.5 ft, AN=22 ft, MP=97.5 ft, and AB║NP with A on MN and B on MP.

Proportion

Corresponding sides of similar triangles  are proportional, so we can write the proportion ...

  MB/MA = MP/MN

  x/(71.5 -22) = 97.5/71.5

  x = 49.5×97.5/71.5 . . . . . . multiply by 49.5

  x = 67.5 . . . . . . feet

if Greg makes 120 minutes of long distance calls for the month, which plan costs less?​

if Greg makes 120 minutes of long distance calls for the month, which plan costs less?

Answers

Answer: Plan A

Step-by-step explanation:

use 120 = x on the graph and which ever one has the smallest y value is the answer

Does anyone know the answer plz ?

Does anyone know the answer plz ?

Answers

Answer:

false it would be something like x root 2

Step-by-step explanation:

What is the fifth term in the expansion of (3x - 3y)??
X²4A

Answers

Answer:

4

Step-by-step explanation:

how to find domain and range of math function?

Answers

The domain are all of the x-values that are located on the x-axis of a cartesian coordinate while the range all of the y-values that are located on the y-axis of a cartesian coordinate.

What is a domain?

In Mathematics, a domain is the set of all real numbers for which a particular function is defined.

In Mathematics, the horizontal extent of any graph of a function represents all domain values and they are read and written from smaller to larger numerical values, and from the left of a graph to the right.

Additionally, the vertical extent of any graph of a function represents all range values and they are always read and written from smaller to larger numerical values, and from the bottom of the graph to the top.

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The distribution of the number of words in text messages between employees at a large company is skewed right with a mean of 8.6 words and a standard deviation of 4.3 words. If a random sample of 39 messages is selected, what is the probability the sample mean is more than 10 words?

0.0210
0.2454
0.3724
0.9790

Answers

Using the normal distribution and the central limit theorem, the probability the sample mean is more than 10 words is of 0.0210.

Normal Probability Distribution

The z-score of a measure X of a normally distributed variable with mean \(\mu\) and standard deviation \(\sigma\) is given by:

\(Z = \frac{X - \mu}{\sigma}\)

The z-score measures how many standard deviations the measure is above or below the mean. Looking at the z-score table, the p-value associated with this z-score is found, which is the percentile of X.By the Central Limit Theorem, the sampling distribution of sample means of size n has standard deviation \(s = \frac{\sigma}{\sqrt{n}}\).

In this problem, the parameters are given as follows:

\(\mu = 8.6, \sigma = 4.3, n = 39, s = \frac{4.3}{\sqrt{39}} = 0.6885\)

The probability that the sample mean is more than 10 words is one subtracted by the p-value of Z when X = 10, hence:

\(Z = \frac{X - \mu}{\sigma}\)

By the Central Limit Theorem:

\(Z = \frac{X - \mu}{s}\)

\(Z = \frac{10 - 8.6}{0.6885}\)

Z = 2.03.

Z = 2.03 has a p-value of 0.979.

1 - 0.979 = 0.021.

The probability the sample mean is more than 10 words is of 0.0210.

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Sayed is paid $8.50 per hour for a standard 36 hour per week. He is paid' time and a half' for all overtime worked. Calculate:a his gross weekly eranings if he works

Answers

Expression of Sayed weekly earnings = 8.50t + (1.5)(8.50)p = 8.50t + 12.75p

where t is the number of hours worked regularly and p is number of hours worked overtime.

Part 1)

Given t = 36 and p = 4,

Gross Weekly earnings = 8.50(36) + 12.75(4)

= 306 + 51

=$357

Part 2)

Given Gross weekly earnings = $420.75 and t=36,

8.50(36) + 12.75p =420.75

306 + 12.75p = 420.75

12.75p = 420.75-306

12.75p = 114.75

p = 114.75÷12.75

p=9

If the perimeter of square X is triple that of square Y, then the are of X is how many times the area of Y?

Answers

Answer:3 more than y i think srry if im wrong

Step-by-step explanation:

Please assist me with this problem

Please assist me with this problem

Answers

put yes
because i did this

which expression is equivalent to 6r^2-11r-10?

Answers

Answer:

(3r+2)(2r−5)

Step-by-step explanation:

You have to factor out the equation.

Hope this helped! :)

por favor please help D:

Answers

Answer:

Im looking around and I dont see anything :C

Step-by-step explanation:

Sorry I could not help!

-Ella-

Use a change of variables or the table to evaluate the following definite integral. 1 Sex³ ( 9x8 (1-x) dx 0 Click to view the table of general integration formulas. 1 √ 9x³ ( 1 − xº) dx = □ (

Answers

To evaluate the definite integral \(\int\limits^1_0 {{\sqrt{(9x^{3}(1 - x))}} } \, dx\), we can use a change of variables or refer to the table of general integration formulas.

By recognizing the integrand as a standard form, we can directly substitute the values into the appropriate formula and evaluate the integral.

The definite integral\(\int\limits^1_0 {{\sqrt{(9x^{3}(1 - x))}} } \, dx\) represents the area under the curve of the function \({\sqrt{(9x^{3}(1 - x))}}\) between the limits of 0 and 1. To evaluate this integral, we can use a change of variables or refer to the table of general integration formulas.

By recognizing that the integrand, \({\sqrt{(9x^{3}(1 - x))}}\), is in the form of a standard integral formula, specifically the formula for the integral of \({\sqrt{(9x^{3}(1 - x))}}\), we can directly substitute the values into the formula. The integral formula for \({\sqrt{(9x^{3}(1 - x))}}\) is:

\(\int {\sqrt{(9x^{3}(1 - x))}} \, dx\) =\((2/15) * (2x^3 - 3x^4)^{3/2} + C\)

Applying the limits of integration, we have:

\(\int\limits^1_0 {{\sqrt{(9x^{3}(1 - x))}} } \, dx\) =\((2/15) * [(2(1)^3 - 3(1)^4)^{3/2} - (2(0)^3 - 3(0)^4)^{3/2}]\)

Simplifying further, we get:

\(\int\limits^1_0 {{\sqrt{(9x^{3}(1 - x))}} } \, dx\)= \((2/15) * [(2 - 3)^{3/2} - (0 - 0)^{3/2}]\)

Since (2 - 3) is -1 and any power of 0 is 0, the integral evaluates to:

\(\int\limits^1_0 {{\sqrt{(9x^{3}(1 - x))}} } \, dx\) = \((2/15) * [(-1)^{3/2} - 0^{3/2}]\)

However, \((-1)^{3/2}\) is not defined in the real number system, as it involves taking the square root of a negative number. Therefore, the definite integral \(\int\limits^1_0 {{\sqrt{(9x^{3}(1 - x))}} } \, dx\) dx does not exist.

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Convert 420 from degrees to radians.

Answers

Steven Scarecrow is looking to go on a Haunted Hayride but wants to leave the kids at home with a
babysitter. He found that Casper charges $23 plus $2 per hour and Balthazar charges $15 plus $4
per hour. Write and solve an equation to determine the number of hours that Steven Scarecrow could
hire either babysitter for the same cost. *
Please help!!!

For ur question
7.33038

Answer:

7π over 3

Step-by-step explanation:

Convert from degrees to radians using the ratio π over 180.

What is the answer??

What is the answer??

Answers

Answer:

multiply both sides of the equation by 3

Step-by-step explanation:

When your trying to solve for a variable, do steps where you are isolating that variable.

In the equation given, to isolate b, get rid of the division first and we can do that through multiplication.


What is the equation of the following graph in vertex form?
(2, 1)
(0,5)

Answers

Step-by-step explanation:

ur ans

What is the equation of the following graph in vertex form?(2, 1)(0,5)
Y= -1x^2 + 5
I think this is correct

Find the surface area of a 7.4 cm long iron rod and 3.1 m radius

Answers

Answer:

144.2 cm

Step-by-step explanation:

Length of the iron rod is 7.4cm

Radius is 3.1m

Therefore the surface area can be calculated as follows

= 2πrl

= 2×3.142×3.1×7.4

= 144.2 I'm

Hence the surface area is 144.2cm

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If the company were to issue preferred stock today, the yield would be 6.6 percent. The stocks current value is: The circle graph below represents the favorite fruit of 300 people How many prefer oranges? b. How many prefer pineapples? c. How many prefer blueberries? d. How many prefer apples? e. How many prefer strawberries? Describe the significance of this warrior being depicted on horseback Zara is having trouble accessing her company's website through her web browser. She has already pinged the static IP address of the web server and it appears to be online. Which of the following might she look at next?a. Ensure that the server's NTP settings are correct.b. Verify that the DHCP settings are correct on the server.c. Ensure that DNS for the domain is configured correctly.d. Check that the LDAP server is also online. Inside the Prepare recipe, the columns highlighted in blue are only previews and will be implemented only when you click on run.True, the preview is meant for you to see the possible outcome of your processing step.False, the processing steps are implemented on the entire dataset and the schema is updated before you click run. Which of the following Boolean expressions are equivalent to the expression num 15 ?Select two answers.(A) (num > 15) AND (num = 15)(B) (num > 15) OR (num = 15)(C) NOT (num < 15)(D) NOT (num < 16) Identify the letter indicating a gland which secretes a hormone controlling basal metabolic rate.a. Eb. Ac. Cd. Be. D Select what revelation 2 says about the church in pergamosA: they lived in a holy cityB: They were loyal to the name of JesusC: they were poorD: they had not denied the faith even when Antipas was martyred 1. The Bangko Sentral ng Pilipinas (BSP) suddenly made a surprise 150 bps cut pushing policy rates down to 0.50% from the current 2.00%. Assuming all else equal, which of the following scenario for the peso is likely to occur according to the International Fisher Effect?a. The PHP depreciates due to the relatively high expected local inflation.b. The PHP depreciates due to the decrease in imports and increase in exports.c. The PHP depreciates due to the relatively low expected local inflation.d. The PHP appreciates due to the increase in imports and decrease in exports.2. ASSUMING ALL ELSE EQUAL - The Philippine government and the Taiwanese government both announced a policy rate hike of 25 bps and 50 bps, respectively. SOLELY BASED ON THIS INFORMATION, which of the following will most likely happen?a. PHP will weaken against USDb. TWD will weaken against PHPc. PHP will strengthen against TWDd. TWD will appreciate against PHP3. Momo Hirai, CFA is an analyst from a Philippine investment bank who specializes in government bond trading. The firm has some excess funds and she is considering to buy a 1-yr treasury bill which pays a rate of 2.50%. Suppose the expected inflation rate and BSP policy rate during the said period is 4.00% and 2.00%, respectively. The real interest rate received on the investment is closest to ____________.a. -1.500%b. 0.500%c. 1.500%d. 2.500%4. Citibank sold a 1-year FX CALL option on USD to a multinational corporation (MNC) based in the Philippines at a premium amounting to X at strike/exercise price of Y. Suppose at the end of one year, USDPHP spot rate is P and USDPHP 1 yr forward rate is Q, which of the following statements is accurate?a. At inception, MNC pays Citibank Y for the purchase of the call option.b. Citibank receives X when the option matures a year after.c. Should MNC exercise the right at maturity, Citibank buys USD at Y from MNC.d. Citibank sells USD at Y should the option holder chooses to exercise the right at maturity. Aspen skiing Co. does not have foreign subsidiary and all materials and revenue are denominated in USD. How does the strong dollar affect Aspen skiing co.? O Strong dollar will make the business of Aspen skiing co. more (price) competitive. O Strong dollar will make the business of Aspen skiing co. less (price) competitive. O Exchange rate will not affect the business of Aspen skiing co. O No change