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DIA [1.3K]
2 years ago
6

Jensen Co. expects to pay €50,000 in one month for its imports from France. It also expects to receive €200,000 for its exports

to Belgium in one month. Jensen estimates the standard deviation of monthly percentage changes of the euro to be 2.5 percent over the last 50 months. Assume that these percentage changes are normally distributed. Using the value-at-risk (VaR) method based on a 97.5 percent confidence level, what is the maximum one month loss in dollars if the expected percentage change of the euro during next month is 2 percent? Assume that the current spot rate of the euro (before considering the maximum one-month loss) is $1.35.
Business
1 answer:
Julli [10]2 years ago
5 0

Answer:

-$5,873

Explanation:

For computation of maximum one month loss in dollars first we need to find out the net exposure and maximum one month loss in percentage which is shown below:-

Net exposure = Received amount - Paid amount

= €200,000 - €50,000

= €150,000

Maximum one - month loss in Percentage = Next month percentage - (Alpha × Euro percentage)

= 2% - (1.96 × 2.5%)

= -2.9%

Maximum one - month loss in Dollars = Net exposure × Current spot rate of the euro × Maximum one - month loss in Percentage

= €150,000 × $1.35 × (-0.029)

= -$5,873

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In the AD partnership, Allen's capital is $140,000 and Daniel's is $40,000 and they share income in a 3:1 ratio, respectively. T
Mamont248 [21]

Answer:

D) 137000 39000

Explanation:

Allen  140,000

Daniel 40,000

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share ratio 3:1

Capital after admission:

180,000 + 40,000 = 220,000

David participation: 20%

220,000 x 20% = 44,000

David investment  40,000

goodwill: 4,000

There is a difference in goodwill which will be supported for the old partner as their current share ratio

Allen 4,000 x 3/4 = 3,000

Daniel 4,000 x 1/4 = 1,000

Capital after David admission:

140,000 - 3,000 = 137,000

40,000 - 1,000 = 39,000

6 0
3 years ago
The manager is responsible for keeping up to date on all regulations and food safety practices as well as _______ and monitoring
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To avoid food becoming contaminated and resulting in food poisoning, food safety guidelines are followed. This is accomplished using a variety of methods, including some of the following:

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4 0
1 year ago
#7. Which is the most likely scenario in which someone would take out a short-term loan with a bank?
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Since it is a short term loan, it wouldn't be a second home or a car, because those are paid for over the course of YEARS.
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6 0
2 years ago
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sesenic [268]

Answer:

Letter a is correct. <em>Acceptable range of prices for any purchase situation.</em>

Explanation:

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6 0
3 years ago
The difference between the economic surplus when the market is at its competitive equilibrium and the economic surplus when the
Zarrin [17]

Answer:

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4 0
3 years ago
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