Answer:
A. Lost $100
Explanation:
Short position refers to a trading technique which involves selling the currency for it to buy later and make a profit.
To calculate the loss if you don't have a forward contract:
Your loss will be
= €1,000 x ($1.50/€ - $1.60/€)
= $100
Answer is A. Lost $100.
Refer below for the explanation.
Short position includes selling the money.
You will get (1.5 × 1,000) = $1,500.
In any case, you could get (1.6 × 1,000) = $1,600
In the event that you didn't have the forward agreement.
So you lost $1,600 - $1,500 = $100.
Answer: a
because if they did all the activities it would be a total of 8-10 hours and they only have friday night
$38.45
Data provided
Next year dividend = $3.23
Required rate of return = $12%
Growth rate = 3.6%
The solution of the stock price is shown below:-
Stock price = Next year dividend ÷ (Required rate of return - Growth rate)
= $3.23 ÷ (12% - 3.6%)
= $38.45
So, we have solved the stock price with the help of above formula.
