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JulijaS [17]
3 years ago
14

Current exchange rate (Feb 15, 2018) is .8011 Euro/$. You speculate the exchange rate will be .8210 Euro/$ on Mar 15, 2018. You

plan to make money in the currency exchange market through the 'Short-selling' method. In this case, the first step is you borrow ________.
Business
1 answer:
SSSSS [86.1K]3 years ago
8 0

Answer:

  • borrow <u>   euros   </u>

Explanation:

You borrow euros to buy dollars.

Assume you borrow $100 euros and buy Euros at the rate 0.8011Euro/$:

  • 100 euros × ( 1 / 0.8011Euro/$) = 124.83$

That means that, on Feb 14, 2018,  with 100 euros you buy $124.83.

Then, you keep the dollars until Mar 15, 2018 and sell them at the rate of 0.8210 Euro/$:

  • 124.83$ × 0.8210 Euro/$ = 102.49 Euro.

In that way, you converted 100Euro into 102.49Euro in 30 days.

That is a return of [102.49 - 100] / [100] × 100 = 2.49%. Then, if you borrowed at a rate less than 2.49% per month, you earned by <em>speculating</em> through the <em>"Short-selling" method</em>.

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High Country Corporation acquired two inventory items at a lump-sum cost of $80,000. The acquisition included 6,000 units of pro
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Answer:

$9,000

Explanation:

Calculation for the amount of gross profit that should be recognize

First step is to calculate the

A's sale value = 6,000 unit*12 per unit

A's sale value = $72,000

Second Step is to calculate B's sale value

B's sale value = 14,000 units*4 per unit

B's sale value= $56,000

Third step is to calculate the Total sale value

Total sale value = $72,000 + $56,000

Total sale value= $128,000

Fourth Step is to calculate the Cost of goods sold of A for 6,000 units and 2,000 units

Cost of goods sold of A for 6,000 units = ($72,000/$128,000) * $80,000

Cost of goods sold of A for 6,000 units = 0.5625*$80,000

Cost of goods sold of A for 6,000 units= $45,000

Cost of goods sold of A for 2,000 units = $45,000*2,000/6,000

Cost of goods sold of A for 2,000 units = $15,000

Last step is to calculate the Gross profit of A for 2,000 units

Gross profit of A for 2,000 units = (2,000*12 per units) - 15,000

Gross profit of A for 2,000 units = $24,000 - $15,000

Gross profit of A for 2,000 units = $9,000

Therefore the amount of gross profit that should be recognize will be $9,000

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2 years ago
​(Yield to​ maturity) The market price is ​$725 for a 16​-year bond ​($1 comma 000 par​ value) that pays 9 percent annual​ inter
wlad13 [49]

Answer:

13.16%

Explanation:

In this question we use the RATE formula i.e shown in the attached spreadsheet

Given that,  

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Assuming figure - Future value or Face value = $1,000  

PMT = 1,000 × 9% ÷ 2 = $45

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The formula is shown below:  

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The present value come in negative  

So, after solving this, the yield to maturity is 6.58% × 2 = 13.16%

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3 years ago
If a customer buys 1 xyz aug 50 put at 1 and sells 1 xyz aug 65 put at 10 when xyz is at 58, the maximum potential gain is?
Olenka [21]

If a client buys 1 XYZ Aug 50 put at 1, and deals 1 XYZ Aug 65 put at 10 when XYZ is at 58, the greatest potential gain is 900.

<h3>The Formula and Calculation of Time Value</h3>

The instructions below show that time value is derived by removing an option's intrinsic value from the option bonus. In other words, the time worth is what's left of the premium after calculating the profitability between the strike expense and the stock's price in the market.

The maximum gain on any distinction spread is the net credit. In this issue, $1,000 was received and $100 paid out, so the net recognition is $900.

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Why is it important to conduct market research on your target audience before building your marketing plan?
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