Answer:
A) Bill and John have a contract for the sale of the bike at $375.00
Explanation:
John first made an offer to buy the bike at $325 ⇒ Bill responded with a counteroffer increasing the price of the bike ⇒ John accepted Bill's counteroffer ⇒ they have a binding contract.
When parties are bargaining a contract, the process of giving an initial offer and then a counteroffer (or counteroffers) is part of the process of forming a contract. It is a necessary part, since without this bargaining process there is no contract. A contract is formed when one of the parties accepts the other party's offer or subsequent counteroffer.
<u>Solution and Explanation:</u>
Assume US Investor need 1000 Pound after 90 days:
Option 1: Forward Option:1000 pound = 1000 multiply with 1.98 = $1980
<u>
Option 2: Invest in UK:
</u>
Need 1000 pound after 90 days
so, Invest in UK pound today 1000 divide by 1.04= 961.5385
to get 961.5385 today he need to pay = 961.5385 multiply with $2 ( Current Spot Rate)
= $1923.077
<u>
Option 3 : Invest in US:
</u>
Need 1000 Pound after 90 days
so forward Exchange rate 1.98 he need 1000 pound* 1.98 = 1980 $ after 90 days
so invest today 1980/1.02 = $1941.176
<u>
Advise: Option 2 is best , Invest in UK Bonds
</u>
Out of the choices given, B. Ask your manager beforehand what to do if the person being called is unavailable is the best answer so that the correct course of actions are taken. If you call and no one answers or even if they do, it's important to understand the correct way to handle the situation instead of being confused or doing the wrong thing. Once you've understood how your manager wants you to handle these situations, you are able to have better knowledge for future phone calls.
Answer:
The below solution will guide your believe of what should be appropriate qualitative assumptions for inherent risk.
Explanation:
