The Decision Act, Pure Rule, And Pseudo Rule Utilitarianism

The Decision: Act, pure Rule, and pseudo-Rule Utilitarianism In this paper I will explain how Act Utilitarianism, pure Rule Utilitarianism, and pseudo-Rule Utilitarianism would differ in their reasoning regarding the case of Al and Betty. With each method of reasoning, I evaluate the situation without background or moral assumptions of each character, and then separately with the assumption that while Al was away Betty became chronically ill and has one day left to live. When evaluating a specific situation with Act Utilitarianism, one must evaluate every instance of that act. The act has to result in the best consequences for the greatest number of individuals. When evaluating Betty’s choices, it would be the moral choice for her to throw the party if by doing so, the happiness produced would be equal or greater than the other things she could be doing at that time. Betty assumes that Al would be opposed to her throwing a party at his place in his absence, but she never actually asks him. Throwing the party could be a great experience for Betty. She could have an amazing time along with all of her friends. However, the consequences of her actions are unknown, i.e. if Al would be upset. Also, we do not know how the party would turn out. Someone could break something or get injured and the party could be awful and not worth her betraying her friendship to Al for. Based on societal norms, without an extenuating circumstance, Betty’s throw ing the party seems deceptive andShow MoreRelatedLogical Reasoning189930 Words   |  760 Pages...................................................................................................vi CHAPTER 1 How to Reason Logically ........................................................................................ 1 Facing a Decision as a Critical Thinker ............................................................................................... 2 Advice for Logical Reasoners ...............................................................................................

Silent Stars Free Essays

Home. Finally. I turn off the heater, the lights, and then the engine. We will write a custom essay sample on Silent Stars or any similar topic only for you Order Now Work was difficult. Another 7-hour shift, completed. I grab my belongings, open the door, and walk to my house. The dogs are barking already. The ferocious bark of Reggie and the low, almost growling of Checkers can be heard from the porch. I open the door to find the addition lights on. Everyone else is asleep. The dogs greet me with their usual delight. Checkers sniffs my legs, and Reggie stars at me, wagging his little â€Å"nubbin.† Turning back to the door, I turn the lock. With a little push, I make sure the door is completely closed. I turn the knob once to make sure it is actually locked. You just never know if someone will come in your home in the middle of the night. I pull the cord, and turn off the light. I hate the dark. My parents snore so loudly. Creeping past their bedroom to my own room, I open the door slowly in an attempt to smother the inevitable screeching sound. â€Å"Erin? Is that you?† Dad asks the instant the door sounds. â€Å"Yeah, Dad. I’m home.† I turn on my bedroom light, and close the door. There’s no need to worry about the sound it makes now. Dad is already awake. My shoulder throbs from all the weight I’m carrying. I put my book bag down in the corner of the room. Placing my orange bag on my bed, I begin to take out all the clothes that need washed. First, my tennis shorts, then my shirt, then my socks, then my shoes. Yep, everything’s there. Next, I take out my school clothes: my jeans, my shirt, and my shoes. Good, didn’t forget anything. Finally, I take the clothes and put in them in the hamper. I’ll never remember in the morning. I go to my closet to pick out my pajamas, choosing my undergarments first. Next, I choose a shirt to sleep in. The last article is my pants. Everything has to match. If they don’t, I have to put them back. Another ten-minute process. Time to shower. The smell of grease, fries, and fat, fast food is overwhelming at night. I slowly slide the door closed, turn on the light, and open the hamper. Showering quickly, I make sure to wash my hair twice. I hate stiff hair. I turn off the water and dry myself. Then, I get dressed, and get ready to brush my teeth. I take my toothbrush out of the holder. The nice, shiny, pink cover needs removed. Taking off the cover and placing it to the left of the sink, I wet my toothbrush once and apply the toothpaste. I wet the brush again. Brushing my teeth slowly, I make sure to get every tooth perfectly clean. Last, I slowly make soft circles on my front teeth making sure to get them cleaned extremely well. I run the brush under the water again, and then rinse my mouth with the hottest water that will come out. Spit the water out, then rinse again. It’s normal in my routine. Now my mouth is clean enough to talk. I sneak to the computer room, and quietly snatch the phone from its charger. Returning to my room is difficult. I have to slowly close the door to avoid waking my parents. I hold the phone under a pillow so my parents can’t hear me dial. Placing my finger on the 9, I dial his number with ease even though I cannot see the buttons I am pushing. Memorizing the location of the numbers on the phone has made this action easier. I quickly cover my head before he answers the phone to drown out the sound of my voice. He picks up and we talk for a while. The floor creaks as the furnace turns on. The sound is reassuring to me now. We hang up after a half an hour and I sneak the phone back to the computer room. I’m almost ready to sleep. I walk back to my room and close the door for the final time. Turning on the radio to Q 102, I grab the pink dinosaur he bought me for Easter, and climb into bed. Quickly I pray for my family and my friends and thank God for all the days he has given me. When I am finished talking to God, I shut my mouth, and then my eyes. The excitement of the day runs through my head again. I wonder about the events that have happened. If I had said something differently, or acted in a different way, what would have happened? Thinking about the fun things that occurred at work and school today makes me smile. My friends are impossible to replace. My mind seems to jump around more quickly now. That’s the sign I was looking for. I am getting close to sleep. As I begin to drift off, I listen to the radio. The words I hear begin to float in my head: â€Å"I probably wouldn’t be this way. I probably wouldn’t hurt so bad. I never pictured every minute, without you in it. Oh, you left so fast. Sometimes I†¦Ã¢â‚¬  How to cite Silent Stars, Papers

Treasury and Risk Management of Swiss Franc †MyAssignmenthelp.com

Questions: 1. Identifying the reason for de-pegging of Franc and stating the hedging strategies implemented by Swiss exporters? 2. Calculating the dollar cash flow from each strategy and detecting their risk? 3. Depicting the most optimal hedge for ABC? Answers: The main reason behind the unpegging of Swiss franc is due to the decisions made by SNB is controlling the valuation of franc, which was rising due to continuous buying of the currency. The franc was mainly pegged with Euro, where SNB increased the supply of franc, which was used in buying the euro and reducing the actual valuation of franc. The pegging was conducted for reducing the franc value against other currencies, as exporters were having trouble selling their products internationally. The Swiss economy is mainly based on exporters, where rising valuation of Swiss franc was hammering progress of the economy. The SNB aimed in depreciating the Swiss franc by accumulating Euro and increasing the flow of franc in the currency market. Bessis (2015) stated that with relevant measure countries can control their currency valuation, which might help in improving the total GDP value. Moreover, the main problems started, when Euro value stated to depreciate against major currencies, which in turn declined value of franc, due to high accumulation of Euro currency by SNB. The value of Euro mainly depreciated by 10% to 12% against US dollar, which devalued franc in the currency market (The Economist 2018). In addition, motive of the SNB was fulfilled when euro stated to depreciate and they did not want any further devaluation of their currency, which led to the de-pegging of Swiss Franc. Approximately 480 billion of Euro currency was accumulated by SNB, which relevantly declined the valuation of Swiss Franc. This increment in foreign currency reserve is directly increasing the chance of hyperinflation due to the increase in supply of domestic currency. On the other hand, Chance and Brooks (2015) criticises that the control of currency was previously conducted by Asian countries, which resulted in the occurrence of Asian financial crisis. Moreover, the measure used by European central bank initiated a decline in euro, which resulted in the devaluation of Swiss Franc. In addition, the overall measure used the European bank resulted in printing more currency, which in turn increased the supply of Swiss franc to continue with pegging. However, the motive of SNB was to reduce the valuation Swiss Franc for supporting their exports, which was being fulfilled by the continuous devaluation of Euro (The Economist 2018). Therefore, the increment in printing of more France needs to be conducted by SNB for maintaining the pegging programs, which was resulting in hyperinflation in their country. Hence, it became the main reason behind the discontinuation of pegging, which was conducted by SNB for devaluating Swiss Franc. In this context, Hopkin (2017) mentioned that countries and government cannot control the impossible trinity, which lead to the augmentation of financial crisis. The above-mentioned reasons are the longing point, which forced SNB to unpegged the franc that was continuously being devaluated in comparison with other countries. The intervention of the government in controlling the rising currency valuation made a drastic decline in Swiss Capital market after the announcement of unpegging conducted by SNB. The swiss stock market collapsed, while the currency value of Franc went from 1.2 to 0.8 in in comparison with USD (The Economist 2018). The Swiss exporters seeing the devaluation of Franc could hedge their exposure in the international market for controlling their loss incurred from current exchange. In addition, the exporters of Switzerland could effectively use option hedging strategy for controlling their losses incurred from devaluation of their currency. In addition, the use of call option could allow exporters in Switzerland to curb the devaluation of franc in comparison to other currencies. In this context, DeAngelo and Stulz (2015) mentioned that the use of hedging process allows investor to reduce the risk from volatile currency and capital market. The sue of call option might help in curbing the exposure of rising currency value. Moreover, the money market hedge could reduce the negative impact of currency valuation, as it could allow the exporters to conduct the trade on similar date and nullify the impact of volatile currency market. This above measure could be used by exporters in Switzerland for curbing the losses, which might incur from currency exchange. In addition, the other form of over the counter hedging strategies could also be used by exporters such as forward rate contracts and fixed value contracts, which could help in reducing the losses from current exchange. Moreover, Alamgir (2015) stated that risk exposure of the exporters could be reduced by using alternative measures, which might support in maintaining the level of profits. On the contrary, Sadgrove (2016) argued that rising volatility in currency market might reduce profits of the exporter, while decline their actual revenue from trade. 2. Calculating the dollar cash flow from each strategy and detecting their risk: Particulars Amount Rate Payment in 1 year 50,000,000.0 Up-Probability $ 60,000,000.0 $ 1.200 Down-Probability $ 40,000,000.0 $ 0.800 Strategy (Un-Hedge) Value Value Payment in 1 year 50,000,000 Spot rate $ 1.100 $ 55,000,000.0 Up-Probability $ 1.200 $ 60,000,000.0 Un-Hedged (Loss) $ 0.100 $ 5,000,000.0 Down-Probability $ 0.800 $ 40,000,000.0 Un-Hedged (Profit) $ 0.300 $ 15,000,000.0 Strategy (Forward hedge) Value Value Payment in 1 year 50,000,000.0 Spot rate $ 1.100 $ 55,000,000.0 Forward rate $ 1.130 $ 56,500,000.0 Up-Probability $ 1.200 $ 60,000,000.0 Hedge (Loss) $ 0.070 $ 3,500,000.0 Down-Probability $ 0.800 $ 40,000,000.0 Hedge (Profit) $ 0.030 $ 16,500,000.0 Strategy (Money market hedge) Value Value Payment in 1 year 50,000,000.0 Interest in Euro 2.000% 1,000,000.0 Amount in euros borrowed 49,000,000.0 Spot rate $ 1.100 $ 53,900,000.0 interest in US 5.500% $ 2,964,500.0 Total payment received in 1 yr $ 56,864,500.0 Up-Probability $ 1.200 $ 60,000,000.0 Hedge (Loss) $ 3,135,500.0 Down-Probability $ 0.800 $ 40,000,000.0 Hedge (Profit) $ 16,864,500.0 Strategy (Option Hedge Put Option) Value Value Payment in 1 year 50,000,000.0 Put option 1.110 Exercise price 0.060 Total value of put option 1.050 $ 52,500,000.0 Up-Probability $ 1.200 $ 60,000,000.0 Hedge (Loss) $ 0.150 $ 7,500,000.0 Down-Probability $ 0.800 $ 40,000,000.0 Hedge (Profit) $ 0.250 $ 12,500,000.0 Strategy (Option Hedge Call Option) Value Value Payment in 1 year 50,000,000.0 Cal option 1.150 Exercise price 0.080 Total value of put option 1.070 $ 53,500,000.0 Up-Probability $ 1.200 $ 60,000,000.0 Hedge (Loss) $ 0.130 $ 6,500,000.0 Down-Probability $ 0.800 $ 40,000,000.0 Hedge (Profit) $ 0.270 $ 13,500,000.0 The table indicates overall risk and cash flow that is generated from the hedging strategy. Moreover, the evaluation of calculation indicates that unhedged strategy has the highest risk involved from investment, as the company does not know about the actual payment, which will be reduced over the period of one year. Furthermore, the risk reduction is conducted by reducing adequate hedging strategies, such as forward strategy, money market strategy and option strategy (Brooks 2015). 3. Depicting the most optimal hedge for ABC: Hedging Strategies Profit from strategy Loss from strategy Strategy (Un-Hedge) $ 15,000,000.0 $ 5,000,000.0 Strategy (Forward hedge) $ 16,500,000.0 $ 3,500,000.0 Strategy (Money market hedge) $ 16,864,500.0 $ 3,135,500.0 Strategy (Option Hedge Put Option) $ 12,500,000.0 $ 7,500,000.0 Strategy (Option Hedge Call Option) $ 13,500,000.0 $ 6,500,000.0 From the overall evaluation money market hedge is identified to be the most viable option for hedging the risk, as the loss is lowest, while the gain from hedging is highest. Therefore, ABC company should conduct money market hedge to reduce the risk from investment, which might incur in one-year period (Evans et al. 2016). References Alamgir, M., 2015. Treasury Operations of Banks in Bangladesh: Issues and Challenges.MERC Globals International Journal of Social Science Management,2(2), pp.96-118. Bakke, T.E., Mahmudi, H., Fernando, C.S. and Salas, J.M., 2016. The causal effect of option pay on corporate risk management.Journal of Financial Economics,120(3), pp.623-643. Bessis, J., 2015.Risk management in banking. John Wiley Sons. Brooks, R., 2015.Financial management: core concepts. Pearson. Chance, D.M. and Brooks, R., 2015.Introduction to derivatives and risk management. Cengage Learning. DeAngelo, H. and Stulz, R.M., 2015. Liquid-claim production, risk management, and bank capital structure: Why high leverage is optimal for banks.Journal of Financial Economics,116(2), pp.219-236. Evans, C., Fisher, J., Gourio, F. and Krane, S., 2016. Risk management for monetary policy near the zero lower bound.Brookings Papers on Economic Activity,2015(1), pp.141-219. Hopkin, P., 2017.Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers. Sadgrove, K., 2016.The complete guide to business risk management. Routledge. The Economist. (2018).Why the Swiss unpegged the franc. [online] Available at: https://www.economist.com/blogs/economist-explains/2015/01/economist-explains-13 [Accessed 23 Mar. 2018].