Answer: You enter into Euro/USD forward contract.
Explanation:
Based on the information given in the question, the best way to manage the dollar currency risk is to enter into Euro/USD forward contract.
A forward contract is a contract between two parties whereby an asset is being bought it sold at a particular price in the future. It should be noted that forward contract is good for speculations.
Answer:
6.82%
Explanation:
In this question we use the PMT formula that is shown on the attachment below:
Given that,
Present value = 102.037% × $2,000 = $2,040.74
Future value = $2,000
Rate of interest = 6.62% ÷ 2 = 3.31%
NPER = 18 years 2 = 36 years
The formula is shown below:
= PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So, after solving this, the monthly payment is $68.15
Now the coupon rate is
= PMT ÷ face value × 2
= $68.15 ÷ $2,000 × 2
= 6.82%
Answer:
False
Explanation:
The contract is not voidable at Leslie's option but rather at the supplier's option. This is because Leslie has agreed to the buy the shoes, irrespective of the price.
Should Leslie want a price stated in the contract, the case has to be taken to court and the judge will have a price stated that suits both parties.
Cheers
Answer:
C) $8,100
Explanation:
A foreign exchange gain happens when one company engages in foreign trade or foreign direct investment and when they convert the foreign currency into domestic money, the final amount is larger than originally expected. This happens because the exchange rate is not fixed, and if the foreign currency appreciated, then a gain will result since more domestic money will be received. On the other hand, if the foreign currency depreciates, this will result in a loss.
