Answer:
Asset exposure
Explanation:
Asset exposure shows the difference that lies between the exposed assets and the exposed liabilities. Here the long in currency is when the exposed assets are more than its liabilities and on the other hand the short in currency is when the exposed assets are less than its liabilities
In addition to this, the linking that need to be done between the firm asset and liabilities of home currency and the fluctuation in exchange rate would be also known as asset exposure
Answer:
$10 profit
Explanation:
In this question, we are asked to calculate the profit or loss to a short position.
Firstly, we identify that the spot price of market index is $900.
Now, a three months forward contract equals a value of $930.
Raising the index to $920 at the expiry date is obviously a profit to the short position.
To calculate the profit here, we simply subtract the index at expiry date from the three months forward contract.
Mathematically, this is equal to $930-$920 = $10 profit
Answer:
$90,000
Explanation:
We could allocate assembly overhead on the basis of the parts used in the assembly process:
wheels ⇒ 300,000 x 2 parts = 600,000 parts
<u>seats ⇒ 600,000 x 3 parts = 1,800,000 parts</u>
total parts assembled 2,400,000 parts
overhead costs per part assembled = $360,000 / 2,400,000 parts = $0.15 per part
so the overhead allocated to wheels should be = 600,000 parts x $0.15 per part = $90,000
Since smoking is very popular. (1 billion people smoke) It would be very important if they start with researching about smoking, so they can hopefully reduce the amount of smokers in the world.
Answer: a. He has an acquisition cost of $4,800 and a date of acquisition of March 15, 2007.
Explanation:
A Put amount gives the holder the right to sell underlying assets. As the Put was exercised, the customer would have to buy the underlying stock and the price they will pay for it is the strike price of the Put less the cost of the Put.
Options contracts come in 100s so;
Acquisition cost = (50 - 2) * 100
= 48 * 100
= $4,800.
The date of acquisition is the day the put was exercised.
