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Grace [21]
3 years ago
12

. The current spot exchange rate is $1.50/€ and the three-month forward rate is $1.55/€. Based on your analysis of the exchange

rate, you are confident that the spot exchange rate will be $1.62/€ in three months. Assume that you would like to buy or sell €1,000,000. What actions do you need to take to speculate in the forward market? What is the expected dollar profit from speculation? A. Sell €1,000,000 forward for $1.50/€, and you expect to gain $120,000. B. Buy €1,000,000 forward for $1.55/€, and you expect to gain $70,000. C. Buy €1,000,000 forward for $1.50/€, and you expect to gain $120,000. D. Wait for three months, if your forecast is correct buy €1,000,000 at $1.62/€.
Business
1 answer:
Andre45 [30]3 years ago
6 0

Answer:

B) Buy €1,000,000 forward for $1.55/€.

Explanation:

To calculate the expected profit consider the following data and formula:

Amount in actions: 1.000.000

Spot exchange rate: 1.62

Three month forward calculation: 1.55

Expected profit=1,000, 000 *( 1.62 - 1.55) = 70,000.00.

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Im 100 percent sure that the anser is c
3 0
3 years ago
Which of the following is NOT a typical strategy for firms to obtain benchmarking data about other companies?a. Hiring former em
Paha777 [63]

Answer:

a. Hiring former employees from other companies and assessing their knowledge.

Explanation:

"Benchmarking" is<em> a process conducted by a company when it wants to compare its performance with other competitors.</em> In order to do this, the company needs to look into <em>specific metrics</em> and<em> </em>approaches in order to analyze their company's operation and how well it does compared to others.

Hiring former employees from other companies and assessing their knowledge is not a typical/common strategy in order to obtain benchmarking data. Not many companies would like to rehire and if they ever do, it will be hard to use the benchmarking data since the former employee's company might be totally different from yours. Remember that competitive benchmarking is only done when you want to compare with your<u> competitors in the same field of business.</u>

6 0
3 years ago
Destin Company signs a contract to manufacture a new 3D printer for $80,000. The contract includes installation which costs $4,0
amm1812

Answer:

From the question, the contract stipulates that Destin Company has three (3) performance obligations.

1. Manufacture a new 3D printer

2. Installation of the 3D printer.

3. Maintenance of the 3D printer over the life of the printer.

All three of these are to be performed by Destin Company for the client they signed the contract with.

4 0
2 years ago
If you started with $100 in the bank and you had $200 after letting it sit there for 5 years, what would be the annual interest
Paha777 [63]

The annual interest rate is 10 %.

Annual percent fee refers to the yearly interest generated with the aid of a sum it's charged to borrowers or paid to buyers. APR is expressed as a percentage that represents the real yearly price of price range over the time period of a mortgage or profits earned on investment If a man or woman borrows hundred rupees at one rupee interest, for instance, he needs to pay one rupee hobby in keeping with month. So in twelve months, he has to pay ten rupees.

Here,

let the annual interest rate is r

new amount = $ 200

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new amount = initial amount * (1 + r)^time

200 = 100 * (1 + r)^7

solving for r = 0.104 = 10.4 %

the annual interest rate is 10 %.

Learn more about The annual interest rate here:- brainly.com/question/2699966

#SPJ4

5 0
1 year ago
PHN Foods granted 18 million of its no par common shares to executives, subject to forfeiture if employment is terminated within
kap26 [50]

Answer:

The $12 million is the net increase in the denominator of the EPS fraction if the market price of the common shares averages $5 per share during 2018.

Explanation:

1. The journal entry is shown below:

For December 31, 2017:

Compensation Expenses A/c Dr ($18 million × $5 per share) ÷ 3 = $30 million

    To Restricted Shares $30 million

(Being compensation expenses recorded for 2017 year)

For December 31, 2018:

Compensation Expenses A/c Dr ($18 million × $5 per share) ÷ 3 = $30 million

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2.  The net increase in the denominator of the EPS fraction for 2018 year  is shown below:

=  2018 shares - Restricted shares

= $30 million - $18 million

= $12 million

Hence, the $12 million is the net increase in the denominator of the EPS fraction if the market price of the common shares averages $5 per share during 2018

6 0
3 years ago
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