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Scrat [10]
4 years ago
12

Suppose:

Business
1 answer:
dolphi86 [110]4 years ago
8 0

Answer:

C) Yes, because the direct rates differ in all markets

Explanation:

₤1 buys €1.50 in NY, Tokyo, and London -> ₤1 = €1.50  

₤1 buys ¥150 in NY, Tokyo, and London -> ₤1 = ¥150

⇔ €1.50 = ¥150

⇔ ¥100 = €1.50/1,5 = €1

$1 buys ¥100 in NY, Tokyo, and London  - > $1 =  ¥100

Tt clearly that €1 is different with $1.0 (as Reuter quoted today, $1.00 = €0.9030), so there’re opportunity for two-point arbitrage .

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Mr. Eli Lilly is very excited because sales for his nursery and Plant Company are expected to double from $600,000 to $1,200,000
liq [111]

Answer:

The correct answer is Cash deficit = ($804,000) and incorrect.

Explanation:

According to the scenario, the calculation can be done as follows:

Cash Flow Statement

Beginning cash   =                                                    $1,200,000  

Now we less the asset buildup, then

Less: Assets buildup (1200000-600000)*50%  =  -$300,000

Now by adding the profit, then

Add: Profit (1200000*8%) =                                     $96,000

Cash deficit =                                                          ($804,000)

As his earning seems unable to cover additional capital expenditure, his optimistic outlook for his cash position appear to be incorrect.

8 0
3 years ago
A company enters into a long futures contract to buy 1,000 units of a commodity for $60 per unit. The initial margin is $6,000 a
bearhunter [10]

Answer:

$62

Explanation:

Given that

Units = 1000

Price per unit = 60

Future price drawn/loss = 2000

Thus

1000 (x - 60 ) = 2000

Where x = future price

x - 60 = 2000/1000

x - 60 = 2

x = 60 + 2

x = $62

Thus, future price that will allow the withdrawal of 2000 is $62.

Note, each $1 increase in future prices leads to $1000 gain. When future price therefore increases by $2, gain gotten will be therefore $2000 and this can be withdrawn. Intial price was $60, thus, future for 2000 withdraw = 60 + 2 = $62.

7 0
3 years ago
Edward is paid $5 an hour less for doing a job that requires an equal level of skill, effort, and responsibility as a job perfor
natali 33 [55]

Answer:

Equal Pay Act

Explanation:

The Equal Pay Act is a federal law that requires employers to pay men and women under the same working conditions equally. Simply put, equal pay for equal work.

This Act was signed into law on June 10, 1963 by John F. Kennedy and it was aimed at abolishing wage differences based on sex, just like in the question above.

5 0
3 years ago
In the Office of Personnel Management's case, the security breach made many people vulnerable to this: a. Loss of personal prope
KATRIN_1 [288]
C) Identity Theft

If you look at the news when security breaches happen there’s often a very high risk of identity theft to those affected
5 0
3 years ago
Suppose Amazon stock is trading for $ 495 per​ share, and Amazon pays no dividends. a. What is the maximum possible price of a c
Contact [7]

Answer:

a) $ 495

b) $ 530

c) $ 30

d) $ 70

Explanation:

Given:

Stock price = $ 495

Strike prize = $ 530

a) The maximum possible price of a call option on​ Amazon is the stock price,

thus, the answer is $ 495

b) the maximum possible price of a put option on Amazon is the strike prize, thus, the answer is $ 530

c) given:

strike price = $ 465

now,

Minimum possible value of call option is given as  :

⇒ Stock price- strike price

on substituting the values, we get

⇒ $ 495 - $ 465

or

⇒ $ 30

thus,

answer is $ 30

d) Given:

strike price = $ 565

Minimum possible value of an american put option on amazon stock is calculated as:

⇒ Strike price- stock price

on substituting the values, we get

⇒ $ 565 - $ 495

or

= $ 70

hence, the answer is $ 70

7 0
3 years ago
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