Managing Interest rate and exchange rate volatility Essay

Managing Interest rate and exchange rate volatility - Essay Example (Buckley, 1996) Assume for example that Junor Plc issues a fixed rate bond to fund its financing needs and at the same time gives out a loan to another party at a floating interest rate. Her interest payments will therefore be fixed while interest receipts will be variable and will depend on prevailing rates. She will therefore be facing basis risk since her interest expenses and revenues will be determined on different basis. A company faces gap risk when it has both fixed rate liabilities and assets. When fixed rate liabilities exceed fixed rate assets then there is positive Gap, with a positive gap a rise in short term rates increases margins while declining rates decrease margins. On the contrary if fixed rate liabilities are less than fixed rate assets, then there is negative gap. In this case a rise in short-term rates decreases margins while a decrease increases margins.(Buckley, 1996). Changes in interest rates will therefore affect both the cash flows and expected cash flows of Junor Plc in that an increase in interest rates will mean higher cash outflows for the company. Changes in interest rates have also been the major determinants of business cycles or trade cycles in emerging markets such as Thailand in recent times. (Elekdag and Tchakarov, 2006). The figure above is an indication of how interest rates and business cycles are related in Thailand. High interest rates lead to low output whereas low interest rates lead to high output. Therefore Junor Plc is likely to face decreases in demand for its products during a period of the high interest rates and increases in demand during lower interest rates. The degree to which a company is affected by currency fluctuations is referred to as foreign exchange exposure. (Shapiro, 2003). Foreign Exchange exposure can be divided into two main types-Accounting exposure and Economic exposure. Transaction reflects the firm’s risk to exchange rate movements regarding

Prostate Cancer Annotated Bibliography Example | Topics and Well Written Essays - 1250 words

Prostate Cancer - Annotated Bibliography Example The article goes further to suggest that physical activities are crucial at this point because they improve one’s psychological and physical well being. In addition, a physical activity intervened lifestyle slows or reverses a declined quality of life. This study suggests that no research so far has ever attempted to evaluate an improvement multiple QOL domain intervention in prostate cancer patients under androgen ablation therapy. The study used a randomized control trial design for active life after cancer to evaluate the efficiency of physical activities interventions in the improvement of QOL of patients under this therapy. In addition, a group of lifestyle program of a 6 month behavioral skill training group was compared to a standard care and educational support program. The objective of this study was to present baseline information that would exemplify the QOL of the chosen sample. The findings indicated that married participants were less psychologically distressed a s compared to those who were unmarried. The limitation to the study was that the researchers experienced challenges in recruiting the participants. This study is relevant to the case study presented because Massri needs to perform more physical activities in addition to his golf to improve his health status. He is lucky to be married to Aziza, hence; he is likely to be less psychologically and physically distressed. Hoyt, M.A., Stanton, A.L., Bower, J.E., KaMala S. T., Litwin, M.S., Breen, E.C. & Irwin, M.R. (2013). Inflammatory biomarkers and emotional approach coping in men with prostate cancer. Brain, Behavior and Immunity, 32, 173-179. doi.org/10.1016/j.bbi.2013.04.008 The objective of the above article was to establish whether emotion coping is connected with psychological and physical health outcome improvement. The study was specific to prostate cancer related stressors in comparison with previous research, which was characterized