Selecting the Appropriate Number of Contracts
What’s the difference between basis & basis point?
Basis = S(t) – F(f, T)
1 Basis Point = 0.01% = 0.0001
A one-basis movement changes the value of a one month $1million borrowing by
$1,000,000 × 0.00001 × 30 ÷ 360 = $8.33
also changes the value of the $1million futures contract by
$1,000,000 × 0.00001 × 90 ÷ 360
Management challenge in Contracting
Challenges for public agencies
Loss of control
Reliance on contracting may put the government in a vulnerable position where essential services are concerned and lead to some loss of control over the services they purchase.
Experienced service providers may have an information advantage over the government when new services are contract
1.The Contract Problem between the Management and the Entertainer.
2. The Problems in the Relationship inside the Industry.
♦ Problem of unfair relationship and Superiority that
the Management has.
⇨ Mental and Physical Damage.
Ex: Drinking parties and sexual violation.
♦ Problem of the Casting System(PD's wholly Decision)
⇨ Sexual bribery
1. Given Virgin Mobile's target market (14 to 24-tear-olds), how should it structure its pricing? The case lays out three pricing options. Which option would you choose and why? In designing your pricing plan, be as specific as possible with respect to the various elements under considerations. (e.g., contracts, the size of the subsidies, hidden fees, average per-minute charges. etc.)