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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.

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Blizzard [7]

\huge\bold\blue{ AnSwEr}

Whatever you were learning, write about it. Since this is post is in middle school, your teacher probably expects atleast half a page to be written in. Write about whatever was asked to be written in the entry. If you're reading a book for class, it may need to be a summary of what you read in the book. If you had an assignment, it's probably about the assignment. "Journal entry" means to write in your notebook, so this wasn't very clear what you need help with, ask a classmate about what assignment needs to be written about

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8 0
3 years ago
Cash flows from investing activities LO P3 Equipment with a book value of $65,300 and an original cost of $133,000 was sold at a
bekas [8.4K]

Answer:

$221,100

Explanation:

Given that,

Book value of equipment = $65,300

Sold at a loss = $14,000

Purchase of a new truck = $89,000

Sale of land = $198,000

Sale of Long term investment = $60,800

Cash flows from investing activities:

= Sale of Equipment - Purchase of a new truck + Sale of land + Sale of Long term investment

= ($65,300 - $14,000) - $89,000 + $198,000 + $60,800

= $51,300 - $89,000 + $198,000 + $60,800

= $221,100

8 0
3 years ago
An investment proposal with an initial investment of $100,000 generates annual net cash inflow of $20,000 for a period of 10 yea
dalvyx [7]

Answer:

5 years

Explanation:

Initital investment           $100,000

Cash inflows 1-5 (20,000*5)             ($100,000)

The payback period for this investment project is 5 years.

or

100,000/20,000=5 years

7 0
4 years ago
Julia brings home ​$2 comma 200 per month after taxes.​ Julia's rent is ​$806 per​ month, her utilities are ​$136 per​ month, an
Naddika [18.5K]

Answer:

The amount left for Julia to save after all expenses have deducted from her take-home(disposable income) is $317 as shown below.

Explanation:

The amount that Julia can save is the amount left of her disposable income when all expenses are taken care of.

The amount that could be saved is computed thus:

Take-home amount               $2,200

Rent                                        ($806)

Utilities                                    ($136)

Car payment                           ($277)

Orthodontist payment            ($196)

Groceries($66*4 weeks)         ($264)

Other expenses                      <u> ($204)</u>

Savings                                    <u> $317</u>

8 0
3 years ago
Read 2 more answers
During the taking of its physical inventory, a company inadvertently counted its inventory as $98,000 instead of the correct amo
ivanzaharov [21]

Answer:

The misstatement would result in the overstatement of assets by $9,000 and also an overstatement of stockholders equity by the same amount.

Explanation:

When the balance of year end inventory is overstated, the cost of goods sold will be understated and this will result in an overstatement of the net income (and by extension, owners equity).

Given that a company inadvertently counted its inventory as $98,000 instead of the correct amount of $89,000

Amount overstated = $98,000 - $89,000

= $9,000

3 0
4 years ago
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