What is the firm’s objective with regard to collection float?
Answer to relevant QuestionsWhat are the common types of collection systems? What are the benefits of using a lockbox system? How does it work? How can the firm assess the economics of a lockbox system? Briefly describe each of the following funds transfer mechanisms: • Depository transfer check (DTC) • Automated clearinghouse (ACH) debit transfer • Wire transfer Why are wire transfers typically used only for ...Define spot and forward exchange rates. If a trader expects to buy a foreign currency in one month, can you explain why the trader might prefer to enter into a forward contract today rather than simply wait a month and ...Explain the difference between the stock price, the exercise price, and the option premium. Which of these are market prices determined by the forces of supply and demand? Put options increase in value as stock prices fall, and call options increase in value as stock prices rise. How can the same movement in an underlying variable (e. g., an increase either in time before expiration or in ...
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