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My name is Ann [436]
2 years ago
14

A U.S.-based importer, Zarb Inc., makes a purchase of crystal glassware from a firm in Switzerland for 39,960 Swiss francs, or $

24,000, at the spot rate of 1.665 francs per dollar. The terms of the purchase are net 90 days, and the U.S. firm wants to cover this trade payable with a forward market hedge to eliminate its exchange rate risk. Suppose the firm completes a forward hedge at the 90-day forward rate of 1.682 francs. If the spot rate in 90 days is actually 1.638 francs, how much will the U.S. firm have saved or lost in U.S. dollars by hedging its exchange rate exposure? Select one: a. -$396 b. -$243 c. $0 d. $243 e. $638
Business
1 answer:
IRINA_888 [86]2 years ago
4 0

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.

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Give an example of a specialist external agency that a café could use to advertise for an accountant in their head office.
vesna_86 [32]

Answer:

A finance reporting accountant prepares periodic financial statements required for external reporting. They collect and analyze financial data, ensuring that all reporting complies with SEC and GAAP reporting regulations and guidelines. They also prepare internal reports as required.

Explanation:

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6 0
2 years ago
Two employers, A and B, pay the same wage but Employer A faces a more inelastic supply curve of labor than Employer B. Both firm
Savatey [412]

Answer:

B.) Employer A will employ more capital than Employer B.

Explanation:

8 0
3 years ago
Sobota Corporation has provided the following partial listing of costs incurred during August:
QveST [7]

Answer:

a. $365,000

b. $346,800

Explanation:

The computations are shown below:

a. For product cost:

= Direct materials used + Direct labor + manufacturing overhead

where,

Manufacturing overhead  = Indirect labor + Property taxes, factory + Depreciation of production equipment

= $45,000 + $18,900 + $42,200

= $106,100

So, the product cost would be

= $168,100 + $90,800 + $106,100

= $365,000

b. For period cost

= Marketing salaries + Administrative travel + Sales commissions + Advertising

= $51,700 + $100,800 + $50,000 + $144,300

= $346,800

4 0
3 years ago
PLEASE ANSWER ASAP!!! (proof isnt needed!)<br> also rocky u better not be a troll!
AnnZ [28]
Answer:
INCREASE
Hope I help!!!
4 0
2 years ago
Assume that the money demand function is (M/P)d = 2,200 – 200r, where r is the interest rate in percent. The money supply M is 2
liubo4ka [24]

Answer: The nominal money supply should set at 1,600.

Explanation:

Given that,

Money demand function: (M/P)d = 2,200 – 200r

r - Interest rate

Money supply (M) = 2,000

Price level (P) = 2

If the fed wants to set the interest rate at 7% then,

Money supply = money demand

(\frac{M}{P})^{s} = (\frac{M}{P})^{d}

\frac{M}{P} = 2,200 – 200r

P = 2 and r = 7%

\frac{M}{2} = 2,200 – 200 × 7

                            M = 800 × 2

                            M = 1,600

The nominal money supply should set at 1,600.

6 0
3 years ago
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