Question

Christoph Hoffeman of Kapinsky Capital believes the Swiss franc will appreciate versus the U.S. dollar in the coming 3-month pe

Rama09 [41]

Answer:

Check the explanation

Explanation:

a. Calculate Christoph’s expected profit assuming a pure spot market speculation strategy.

Details Amount

Number of Swiss francs can buy and

invest with $100,000 ($100,000/$0.5820) 171821.31

After 3 months SF's are sold to acquire

dollars back SF 171821.31* $0.6250) $107,388

Less: Invested dollars $ 100,000.00

expected profit assuming he buys or sells

SF three months forward $7,388

b. Calculate C’s expected profit assuming he buys or sells SF three months forward:

Details Amount

Number of Swiss francs can buy and

invest with $100,000 ($100,000/$0.5640 $ 177304.96

After 3 months SF's are sold to acquire

dollars back SF 177,304.96* $0.6250) $ 110,815.60

Less: Invested dollars $ 100,000.00

expected profit assuming he

buys or sells SF three months forward $10,816

8 0

3 years ago

Naomi tells ogden, who has no knowledge of shakespearean comedy, that she will tutor him in the subject for $50. as an offer, th

Licemer1 [7]

As an offer, this is effective.
Ogden obviously wants to know something about Shakespearean comedy, because he may need it for an exam, or his job, or maybe he is just interested in the subject. Thus, he wishes to learn this from someone, which makes Naomi's offer an effective one.

7 0

3 years ago

Danielle vwill be offering a tool sharpening service at her garden and landscaping stor on the first Tuesday of every month She

lorasvet [3.4K]

Answer:

b. customer relationships

Explanation:

Based on the information provided within the question it can be said that in this scenario Danielle is addressing the element of customer relationships. This term refers to the ways that a company or individual engages with the customers in order to improve the experience that those customers have with the company. This leads to good customer experience which creates customer loyalty and thus increases sales.

8 0

4 years ago

Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets total

VikaD [51]

Answer:

$538,000

Explanation:

EFN = [(assets/sales) x ($ Δ sales)] - [(liabilities/sales) x ($ Δ sales)] - [profit margin x forecasted sales x (1 - dividend payout)]

current sales = $5,000,000

change in sales = $1,000,000

assets $4,000,000

profit margin = 6%

1 - dividend payout = 45%

current liabilities that change in proportion to sales = $500,000

forecasted sales = $6,000,000

EFN = [($4,000,000/$5,000,000) x ($1,000,000)] - [($500,000/$5,000,000) x ($1,000,000)] - (6% x $6,000,000 x 0.45)

EFN = $800,000 - $100,000 - $162,000 = $538,000

4 0

4 years ago

Suppose you like to make, from scratch, pies filed with banana cream and vanila pudding. You notice thai the ce of bananas has i

Mumz [18]

Answer:

A. Decrease

Explanation:

In this case, Banana cream and Vanilla pudding are complementary goods which means that they are products used together. Complementary goods are goods with negative cross elasticity of demand. This means than an increase in the price of one good will lead to a decrease in the demand for the other good and a decrease in price for one good will lead to an increase in demand for the other good.

Here, the prices of bananas increased, as a result the demand for vanilla pudding decreases because they are goods with negative cross elasticity of demand.

5 0

3 years ago