## Discuss The Agency Problem. What Initiatives Can Help To Resolve This Problem?

### finance

##### (b) Mention the theories in relation to MNC’s growth and expansion. Elaborate one of them by explaining how this serves the expansion purpose

Q.2 Financial Math Week 2: Answer any ONE of the following: 5x1=5 Marks (a) You are planning to pay off your current car. You expect to pay \$8500 per year at the end of each year from year 2 to year 5 (inclusive). What is the present value of this annuity today, if the annual interest rate is 6%?

Q. 3 Financial Math Week 3 and 4: COMPULSORY

You are the forex control officer in the foreign exchange department of Bank Monash (based in Melbourne, Australia). You have been given three tasks to accomplish.

You need write a put option for one of your client ABC Ltd. The option involves Canadian Dollar (\$CAD) and Australian Dollar (\$AUD). Your bank charges a premium of \$AUD 0.05 for each unit of \$CAD traded via put option contract. The prediction is, the spot rate can be \$ 1CAD = \$AUD 1.23 around the time of option’s execution date (expiry date). What strike rate you should put to prevent any loss if the contract is executed?