Creativity and decision making managers must take steps to promote organizational learning and creativity at individual as well as group levels to improve the quality of decision making throughout the organization. managers can encourage and promote entrepreneurship that mobilizes resources to take advantage of an opportunity to provide customers with new or improved goods and services. the quality of managerial decision making ultimately depends on innovative responses to opportunities and threats. how can managers increase their ability to make non programmed decisions that will allow them to adapt to, modify, and even drastically alter their task environments so they can continually increase organizational performance

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out