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uysha [10]
4 years ago
12

Andreas Broszio​ (Geneva). Andreas Broszio just started as an analyst for Credit Suisse in​ Geneva, Switzerland. He receives the

following quotes for Swiss francs against the dollar for​ spot, 1 month​ forward, 3 months​ forward, and 6 months forward. Spot exchange​ rate: Bid rate SF1.2573​/$ Ask rate SF1.2599​/$ ​1-month forward 10 to 15 ​3-months forward 14 to 22 ​6-months forward 20 to 30 The current​ one-year U.S.​ T-Bill rate is 4.1%. a. Calculate outright quotes for bid and ask and the number of points spread between each. b. What do you notice about the spread as quotes evolve from spot toward 6​ months?
Business
1 answer:
Law Incorporation [45]4 years ago
6 0

Answer:

The answer is below

Explanation:

a) The spread is the difference between the ask and bid price, it is given by:

Spread = ask - bid

The outright quotes are given as:

1 - month forward:

Bid = 1.2573 + 0.0010 = 1.2583

Ask = 1.2599 + 0.0015 = 1.2614

3 - month forward:

Bid = 1.2573 + 0.0014 = 1.2587

Ask = 1.2599 + 0.0015 = 1.2621

1 - month forward:

Bid = 1.2573 + 0.0020 = 1.2593

Ask = 1.2599 + 0.0030 = 1.2629

                                                      Bid                             Ask                    Spread

1 - month forward:                         1.2583                      1.2614                 0.0031

3 - month forward:                        1.2587                      1.2621                 0.0034

6 - month forward:                        1.2593                     1.2629                 0.0036

b) The spread widen as it spot moves to 6 - month, this can lead to a thinner trading volume.

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Boris works as a receptionist. He's happy with his salary, he gets along well with his coworkers and his boss, he feels no stres
Naily [24]

Answer: Person-Vocation fit

Explanation: According to the question, Borris lacks Person-Vocation fit as he isn't fully satisfied in his current field of employment as a receptionist, he is aspiring for a better more Noble job profession.

Although Boris has no issue with his current company of employment, he is not satisfied with his job.

7 0
4 years ago
All of the following bank reconciliation items would result in an adjusting entry on the company's books excepta. interest earne
Olin [163]

Answer:

b. deposits in transit

Explanation:

Bank Reconciliation: The bank reconciliation deals with the bank statement balance and the cash statement balance. The motive is to compare these two statements so that the organization can run in the smooth manner.  

There are various transactions due to which the bank statement balance and the cash statement balance do not match. To match these statements, we adjust the transactions accordingly.

The adjusting entry of interest earned is

Cash A/c Dr

     To Interest income A/c

(Being interest is earned)

Likewise, for The fee for collection

Bank charges A/c

     To Cash A/c

(Being fees is charged)

And for NSF check of customer, it would be

Account receivable A/c Dr

          To Cash A/c

(Being the adjusting entry is made)

So, for this the adjusting entry is made but for Deposit in transit , no adjusting entry would be made.

6 0
3 years ago
The following information is available for Barnes Company for the fiscal year ended December 31: Beginning finished goods invent
weqwewe [10]

Answer:  $57,000

Explanation:

Given that,

Beginning finished goods inventory in units = 0

Units produced = 7,000

Units sold = 5,100

Sales = $663,000

Materials cost = $140,000

Variable conversion cost used = $70,000

Fixed manufacturing cost = $490,000

Indirect operating costs (fixed) = $102,000

Total Variable cost of units produced = Materials cost + Variable conversion cost used

                                                               = $140,000 + $70,000

                                                               = $210,000

Variable\ cost\ per\ unit = \frac{Total\ variable\ cost}{units\ produced}

                                               =\frac{210,000}{7,000}

                                               = $30

Units in ending inventory = Units produced - Units sold

                                          = 7,000 - 5,100

                                          = 1,900

Value of Variable costing ending inventory = Units in ending inventory × Variable cost per unit

                                                                        = 1,900 × $30

                                                                        = $57,000

5 0
3 years ago
During a conference call with the corporate office, you are told by a senior executive that you will be going abroad in the next
vladimir2022 [97]

Answer:

C.Clarify the situation, and ask specific questions about the overseas company's cultural and ethical practices. Also, ask what your company policies are regarding intercultural ethics.

Explanation:

In doing business with foreign cultures one needs to know the expected way transactions are conducted in the country.

A senior executive told you on conference call that you should increase expense amount because when you travel abroad for a trip you will give $5,000 each to top executives of a large account.

In your locale it may be considered bribery, but in the foreign country it may be rude not to give a gift when doing business.

So you need to clarify what acceptable ethical practices are with the foreign company.

6 0
3 years ago
Kyra is a middle manager for her firm and just finished comparing the results of a promotional campaign with the company's outco
Anni [7]

Answer:

C. communicate results and deviations with management and employees involved.

Explanation:

The control process is a process in which the company collects and evaluates the information about a system or process to make decisions. This process involves: establishing performance standards, measuring the actual performance, evaluate the performance against the standards, analyze results and possible deviations and take the necessary actions. As Kyra already compared the results of the promotional campaign with the company's outcome expectations, the next step would be to analyze the results in which she would have to share the information with the employees involved and determine if there are deviations. According to this, the answer is that the next step in the control process is to communicate results and deviations with management and employees involved.

4 0
3 years ago
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