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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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Southland Company is preparing a cash budget for August. The company has $17,500 cash at the beginning of August and anticipates
algol13

Answer:

The company must borrow $6200

Explanation:

To calculate the borrowing required, we need to determine the ending cash that will be available at the end of the August.

The ending cash balance will be,

Ending balance = Opening balance + Receipts - Payments/disbursements

Ending balane = 17500 + 121800 - 135500 = $3800

As the company requires to maintain $10000 minimum cash.

The company will need to borrow 10000 - 3800 = $6200

8 0
3 years ago
Each week, Joe’s boss gives him a list of tasks and processes needing to be completed. Which motivating factor does
Fantom [35]

Based on the information given, the motivating factor that is satisfied is it's products.

Motivating factors simply refer to the strategies, incentives, recognition, etc that can be used to improve the motivation to perform the duties at work.

From the information given, it can be noted that the motivating factor is task identification and this is important for the products.

Learn more about motivation on:

brainly.com/question/11871721

8 0
3 years ago
A production department's output for the most recent month consisted of 16,500 units completed and transferred to the next stage
kodGreya [7K]

Answer:

The equivalent units of production for the month, assuming the company uses the weighted average method is 26,400 units.

Explanation:

The equivalent units of production for the month when the company uses the weighted average method is the addition of the units completed and transferred to next stage and degree of completion of the units in ending Work in Process inventory.

This can therefore be calculated as follows:

Equivalent units of production for the month = Units completed and transferred to next stage + Units in ending Work in Process inventory

Since,

Units completed and transferred to next stage = 16,500 units

Units in ending Work in Process inventory = 16,500 * 60% complete = 9,900 units

Therefore, we have:

Equivalent units of production for the month = 16,500 + 9,900 = 26,400 units

Therefore, the equivalent units of production for the month, assuming the company uses the weighted average method is 26,400 units.

3 0
3 years ago
Which of the following questions is a macroeconomic issue?
Levart [38]

Answer:

Options A and C touches on macro economic issues

a) What is the future growth prospect for an economy?

c) What effect would a cure for Mad Cow Disease have on the market for beef?

Explanation:

macroeconomics is a branch of economics that deals with the relationship of the major factors in an economy. It focuses on the aggregate changes in the economy such as unemployment, growth rate, gross domestic product and inflation in order to ascertain the behavior and performance of an economy as a whole.

These factors include include supply and demand in a labor market, market failure, competition, price stability, productivity and efficiency.

Therefore, the future growth prospect of an economy and the effect of mad cow disease on the market for beef is a macro economic issue.

5 0
3 years ago
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