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Misha Larkins [42]
2 years ago
8

Golden has a receivable due in 30 days for 30,000 euros. The treasurer is concerned that the value of the euro relative to the d

ollar will drop before the payment is received. What should Golden do to reduce this risk? a. Buy 30,000 euros now b. Enter into an interest rate swap contract for 30 days c. Enter into a forward contract to sell 30,000 euros in 30 days d. Golden cannot effectively reduce this risk
Business
1 answer:
attashe74 [19]2 years ago
8 0

Answer:

The answer is c. Enter into a forward contract to sell 30,000 euros in 30 days

Explanation:

The risk Golden is facing is the exchange rate risk. Specially, as of the firm's concern, 30,00 euros they will receive in 30 days will not be worth as much as it is now because the Euro is expected to be depreciated against the firm's domestic currency.

So, they may enter into a forward contract allowing them to sell 30,000 euros in 30 days ( take short position in Euro) at pre-determined exchange rate. By doing so, they effectively eliminate the exchange rate risk by lock-in the exchange rate at the day they receive 30,000 euro.

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LeBron James is one of the best basketball players in the country, was selected by the Cleveland Cavaliers as the first pick in the 2003 NBA draft, signing a three-year contract worth almost $13 million, with an option for a fourth year at $5.8 million. Had he decided to attend college instead, James would have incurred an opportunity cost of at least $19 million in forgone income to earn a four-year college degree.

Opportunity cost is the value you would gain or lose if you choose a different path or solution. The opportunity cost in this scenario is deciding to play in the NBA since college was too expensive. LeBron James ultimately saved time and money by taking the detour because he received a contract worth close to $13 million; otherwise, he would have had to pay more and spend more time attending a four-year college.

LeBron's decision to join the NBA right after high school graduation has an opportunity cost because he might have attended a four-year university or college instead. He was chosen by the Cleveland Cavaliers as the first overall choice in the 2003 NBA Draft

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The analytic technique utilized after an adverse event occurs to prevent its recurrence is called?
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The analytic technique utilized after an adverse event occurs to prevent its recurrence is called Root cause analysis.

<h3>What are the root cause analysis five steps?</h3>
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Answer:

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