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
Shkiper50 [21]
3 years ago
12

ABC Software is a producer of educational software for children below the age of twelve. The company has operations in Switzerla

nd and would like to expand its foreign operations with a new facility in China. If ABC Software holds a currency option to purchase Swiss francs at SF 1.67/$ in 30 days, at the end of which the exchange rate is SF1.70/$, then ABC Software ________.
Business
2 answers:
igomit [66]3 years ago
5 0

Answer:

Would not exercise its currency option

Explanation:

Currency options are one of the most common ways for corporations , individuals or financial institutions to hedge against adverse movements in exchange rates.

A currency option is a contract that gives the buyer the right , but not the obligation, to buy or sell a certain currency at a specified exchange rate on or before a specified date.

tankabanditka [31]3 years ago
4 0

Answer:

will not exercise the purchase option.

Explanation:

ABC Software will not exercise its purchase option because the Swiss franc depreciated against the US dollar. Why would it exercise the option and pay a higher price? Currently with $1 they purchase 1.70 francs, which is 0.03 francs more than the call (purchase) option.

You might be interested in
X-Mart purchased $300 of merchandise on account. Demonstrate the journal entry to record this transaction, assuming the perpetua
pav-90 [236]

Answer:

See explanation

Explanation:

Since X-Mart company uses perpetual inventory system, the inventory system shows the real-time selling of inventories. Purchasing merchandise on account means no cash has been paid and a liability is existed. To record the transaction, the following journal entry will require in the book of X-Mart-

Debit    Merchandise Inventory    $300

Credit               Accounts payable          $300

3 0
3 years ago
Read 2 more answers
When using the needs approach, several "special needs" should be considered. One special need is money to cover unexpected event
12345 [234]

Answer:

Emergency fund.

Explanation:

Emergency funds are money that we keep on hand in case of unforeseen events. It may cover car repairs, unforeseen buying, medical bills and so on.

It is important to hold some emergency funds so as to avoid being stranded with no access touch needed resources.

Also emergency funds can be saved over time in case of job loss, having some back-up funds to use in the meantime will be a wise strategy.

3 0
3 years ago
Other than the economic indicators discussed in this chapter, what are some other data items that might be used to measure busin
astra-53 [7]
That's a hard one sorry
5 0
3 years ago
Assume that because of a new law, the types of significant transactions a partnership engages in are no longer lawful. two of th
hammer [34]
No thsy will have to sell their share
3 0
3 years ago
Holding other factors constant, if new technology becomes available that allows machines to produce manufactured goods more quic
Ber [7]

Answer: Increase; increase

Explanation:

Efficiency is so vital to business and manufacturing. The ability of a business to produce and curb minimal loss will give a boast on production and encourage manufacturers to do more, especially when they have the ability to produce in large quantity (by batches) and still get a good ratio for the number of goods manufactured. This is where machines has aided productivity, as they were introduced, productivity increased and they were minimal loss and time waste when producing. When technology allows for more of this effective machines, manufacturers will produce more and there would be a boast in investment.

4 0
3 years ago
Other questions:
  • Does the order of variables matter when combining like terms in algebra
    10·1 answer
  • What are the portfolio weights for a portfolio that has 148 shares of Stock A that sell for $35 per share and 110 shares of Stoc
    13·1 answer
  • The amount of federal income taxes withheld from an employee's gross pay is recorded as a(n)
    6·1 answer
  • A subtle form of racial discrimination in housing is​ "racial steering." racial steering occurs when real estate agents show pro
    14·1 answer
  • The accourtant for Mega Stores, Inc, should have recorded the following correct entry Jan 15 Notes Receivable 243 Equipment 243h
    9·1 answer
  • 1. describe the it architecture (both type of it architecture and its information system parts) at pepsiamericas before its cust
    6·1 answer
  • A firm wants to strengthen its financial position. Which of the following actions would INCREASE its quick ratio?a) Offer price
    5·1 answer
  • Use your understanding of the current international business environment to complete the sentence. A result of globalization is
    15·1 answer
  • Dale’s young son does not know much about his dad’s job but he does know that his dad works at the Chevy Manufacturing Plant. Da
    11·1 answer
  • The cash records of Crane Company show the following. For July:
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!