Answer:
e. $638
Explanation:
payment to be made as per forward contract (IN $)
= 39960/ 1.682
= $23757.43
now the actual rate after 90 days is 1.638
payment at 1.638 rate = 39960/ 1.638
= $24395.6
loss by hedging = $24395.6 - $23757.43
= $638.17
Therefore, The U.S. firm have saved or lost $638 in U.S. dollars by hedging its exchange rate exposure.
It is important for companies to build cooperative and transparent channel systems for moving goods, supplies, and services. Well-known fast food franchises usually set up <u>contractual </u>distribution systems, where members are bound to cooperate through legal agreements.
<h3>What is a distribution system?</h3>
A distribution system can be defined as the channel of distributing goods or product from the manufacturer to end user or from one location to another location.
Hence, Well-known fast food franchises often set up <u>contractual </u>distribution systems in which product distribution are join or combined together by contractual agreement.
Learn more about distribution system here:brainly.com/question/11460602
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Answer:
Hong Kong's economy was able to sustainably grow at very high rates during a long period of time. This means that Hong Kong's GDP per capita will constantly grow, so even if it started at a very low level it eventually grow to much higher levels.
Meanwhile, in Argentina and Venezuela, the economic growth rate was very small, sometimes even negative. Their GDP per capita may have been much higher than Hong Kong's 50 years ago, but since it stagnated for so long, it didn't grow that much.
Answer:
The return on stock XYZ is 3.2
Explanation:
The expected return on a stock whose returns differ based on different scenarios can be calculated by multiplying the return in a scenario by the probability of that scenario and taking a sum of all such scenario returns after they have been multiplied by their respective probabilities.
The formula can be written as,
Return on a stock = rA * pA + rB * pB + ... + rN * pN
Where,
- r represents the scenario returns
- p represents the probability of scenarios
Probability of normal state (x) = 1 - (0.15 + 0.1 + 0.2) = 0.55
Return on stock XYZ = 0.35 * 0.15 + 0.08 * 0.55 + 0.01 * 0.1 + (-0.33) * 0.2
Return on stock XYZ = 0.0315 or 3.15% rounded off to 3.2%
Answer:
Yes the scenario describes a competitive market
Explanation:
There are 3 factors of a competitive market that stands out in the given scenario which are:
1. Many Buyers and Sellers: In the given scenario it mentions clearly that ''There are hundreds of colleges that serve millions of students each year''. Hence it is very clear that the buyers which are (in this scenario) the students, and the sellers who are the (in this scenario) the colleges; are many.
2. Perfect Information: A competitive market is characterized by the availability of information about the products in offer. In the given scenario, it suggests clearly that the availability of information ''allows students with diverse preferences to find schools that match their needs''. This could not have been possible if the students did not have perfect information about the colleges.
3. Identical products: Another feature of a competitive market is the availability of identical products. In the given scenario, it states clearly that ''The colleges vary by location, size, and educational quality''. Other than these features the colleges are offering basically the same product which is education.