1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Misha Larkins [42]
3 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]3 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.

You might be interested in
You need a 30-year, fixed-rate mortgage to buy a new home for $250,000. Your mortgage bank will lend you the money at an APR of
cricket20 [7]

Answer: $463,067.50

Explanation:

Calculation of single bill payment i.e. Future value

Future\ value=Present\ value\times(1+r)^{n}-Payment\times\frac{(1+r)^{n}-1 }{r}

Future\ value=250,000\times(1+\frac{5.45}{1200} )^{360}-900\times\frac{(1+\frac{5.45}{1200} )^{360}-1 }{\frac{5.45}{1,200} }

                            = $250,000 × 5.110505847 - $900 × 905.06551

                            = $1,277,626.46 - $814,558.96

                            = $463,067.50

Therefore, the single balloon payment will be $463,067.50

8 0
3 years ago
Martin wants to provide money in his will for an annual bequest to whichever of his living relatives is oldest. That bequest wil
8090 [49]

Answer:

$16,667

Explanation:

Given that

Cash flows = $1,000

Growth rate = 6%

Interest rate = 12%

So by considering the above information, the amount would be

Amount = Cash flows ÷ (Interest rate - growth rate)

= $1,000 ÷ (12% - 6%)

= $16,667

We simply applied the above formula so that the amount could come by considering the given information

3 0
3 years ago
An blank is a statement used to communicate ones feelings in a nonconfrontational manner.​
Vaselesa [24]

Answer:

An art

Explanation:

An art is a blank is a statement used to communicate ones feelings in a nonconfrontational manner.​

3 0
3 years ago
Problem 14-04 Stock Repurchase A firm has 5 million shares outstanding with a market price of $15 per share. The firm has $15 mi
Charra [1.4K]

Answer:

$60 million

Explanation:

The computation of the value of operations after the repurchase is shown below:-

Total corporate value = Value of operation + marketable securities

(5 × $15 million) = Value of operation + $15  million

$75 million = Value of operation + $15  million

Value of operation = $75 million - $15  million

= $60 million

We simply applied the above formula so that the firm's value of operations after the repurchase could come

5 0
3 years ago
A data custodian works directly with data owners and is responsible for the storage, maintenance, and protection of the informat
elena-s [515]

Answer:

The statement is: True.

Explanation:

A data custodian is responsible for storing and give proper use to specific types of information. This character appears at the governance level of safe-keeping data. Typically, the information the custodian guards is related to businesses and general IT (Information Technology).

6 0
3 years ago
Other questions:
  • Which of the following are assumed to remain unchanged along a given short run aggregate supply curve?
    13·1 answer
  • The High Towers Center is a 300-room hotel that was built ten years ago for a total project cost of $24,000,000. The market valu
    10·1 answer
  • Changes in supply are reflected in______of the supply curve, while changes in the quantity supplied are reflected in______along
    9·1 answer
  • Bryon operates a consulting business and he usually works alone. However, during the summer Bryon will sometimes hire undergradu
    13·1 answer
  • How do u maintain your allowance
    10·1 answer
  • The economy is in equilibrium, TP = TE. Then, net exports fall. As a result, the __________ curve shifts __________, inventory l
    15·1 answer
  • Write the features of correspondence?​
    12·1 answer
  • The natural rate of unemployment is the a. unemployment rate that would prevail with zero inflation. b. amount of unemployment t
    13·2 answers
  • A portfolio with a 21% standard deviation generated a return of 16% last year when T-bills were paying 5.5%. This portfolio had
    11·1 answer
  • Roddy Rich is a very astute entrepreneur and wants to invest in an asset that will require high maintenance with disregard for s
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!