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eimsori [14]
3 years ago
10

Kalons, Inc. is a U.S.-based MNC that frequently imports raw materials from Canada. Kalons is typically invoiced for these goods

in Canadian dollars and is concerned that the Canadian dollar will appreciate in the near future.
Which of the following is not an appropriate hedging technique under these circumstances?
a. purchase Canadian dollars forward.
b. purchase Canadian dollar futures contracts.
c. purchase Canadian dollar put options.
d. purchase Canadian dollar call options.
Business
1 answer:
pantera1 [17]3 years ago
5 0

Answer:

The correct answer is C) purchase Canadian dollar put options.

Explanation:

A sale option (or put option) gives its holder the right - but not the obligation - to sell an asset at a predetermined price until a specific date. The seller of the option to sell has the obligation to buy the underlying asset if the holder of the option (buyer of the right to sell) decides to exercise his right.

The purchase of put options is used as hedging, when price falls are anticipated in shares that are held, since by means of the purchase of Put the price is established from which money is earned. If the stock falls below that price, the investor earns money. If the share price falls, the profits obtained with the sale option compensate in whole or in part for the loss experienced by said fall.

Losses are limited to the premium (price paid for the purchase of the sale option). Earnings increase as the share price falls in the market.

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Suppose a family-owned donut shop has $80,000 in total revenues, $36,000 in rent, and $20,000 in additional operating costs. The
Umnica [9.8K]

Answer:

B) less than $24,000.

Explanation:

Given:

Revenue: $80,000

  • Renting fee: $36,000  
  • Operating costs: $20,000

So earning before tax is:

Revenue - Renting fee - Operating cost

= $80,000 - $36,000 - $20,000

= $24,000

In this case, they want to know the economic profits from the donut shop, which means that it will be less than $24,000 because they did not count the wage of the husband and wife.

4 0
3 years ago
Read 2 more answers
Add a sentence that connects your strength with an important opportunity in your industry. What benefit or value do you bring to
Volgvan

Answer:

Explanation:

I am so creative in time-management and always finding solutions to any problem in projects and have a encouraging including positive effect on any team and at the same time valuing success with all I set out to achieve.  

a) I influence increased revenues through my dedication to research, solution solving, and revenue improvement.

c) I like building and strengthening strategic and tactical alliances. I smash down borders and give room for creativity, innovation and profit making with an resolute focus on the ever-evolving need for development.

8 0
4 years ago
Peters, Inc. produces 3 products: P1, Q2, and R3. P1 requires 400 purchase orders, Q2 requires 600 purchase orders, and R3 requi
alexdok [17]

Answer:

P1 $36,000

Q2 $54,000

B2 $90,000

Explanation:

For computing each ordering and receiving overhead assigned, first we have to calculate the price per order which is shown below:

= Total cost of purchase orders ÷ total purchase orders

where,

Total purchase orders = P1 purchase orders + Q2 purchase orders + R3 purchase orders

= 400 + 600 + 1,000

= 2,000 purchase orders

And, the Total cost of purchase orders is $180,000

Now put these values to the above formula  

So, the price would equal to

= $180,000 ÷ 2,000 orders

= $90

Now we can compute easily.

For P1 = Purchase orders × price per order

          = 400 × $90

          = $36,000

For Q2 = Purchase orders  × price per order

            = 600 × $90

            = $54,000

For R3 = Purchase orders  × price per order

           = 1,000 × $90

           = $90,000

The given options are not correct

4 0
3 years ago
5. How long is a permanently disabled worker allowed to receive disability income?​
Monica [59]

If you are unable to return to work and your condition has not improved, then you will continue to receive Social Security Disability payments and will be up for review again in another 2 to 5 years.

Hope it helps

Have a good day

3 0
3 years ago
Back in the 1930s, the house at 102 Barbour Street was the only one in sight. Since then, however, the town has grown considerab
Leviafan [203]

Answer:

Non-conforming zoning

Explanation:

Non-conforming is a type of variability in the zoning when a piece of land may be excluded from the current zoning decrees because of changes made by a previous owner or prior to an intended use by the present zoning decrees, in accordance with local law.

3 0
3 years ago
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