Why do firms employ cash concentration techniques? What are some of the popular transfer mechanisms used by firms to move funds from depository banks to their concentration banks?
Answer to relevant QuestionsHow can the cash manager model the benefits and costs of various funds transfer mechanisms to assess their economics? How can this analysis be used to determine the minimum transfer amount? Wachovia Corporation is a major (super regional) U.S. bank. The Wachovia corporate website is located at http://www.wachovia.com. Among the cash management services available to its business customer are various collection ...Explain the role of arbitrage in maintaining the parity relationships. There is an old saying that nature abhors a vacuum. The financial equivalent is markets abhor arbitrage opportunities. Explain the central role this principle plays in the binomial model. Refer to the data in the following table. Strike Price Put Price $30 ....... $1.00 $35 ....... $3.50 $40 ....... $6.50 Suppose an investor purchases 1 put with X = $30 and one put with X = $40 and sells two puts with X = ...
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