Answer:
$1 = 122.84 Hungarian Forint
Explanation:
<em>The purchasing power parity theory states the future spot rate and and he current spot exchange rate between two currencies can be linked to the relative inflation rate between the two currencies. This also known as the law of one price.
</em>
The model is given as follows:
S = So× (1+Fc)/(1+Fh)
Fc - inflation rate in Hungary - 6.9%
Fh- Inflation rate in the US- 2.8%
S- Future spot rate- ?
So- Current spot rate-188.13
Expected exchange rate one year from now
118.13× (1.069)/(1.028)
=122.8414
= 122.84 Hungarian Forint
$1 = 122.84 Hungarian Forint
Answer:
a) 8,000
b) Yes
c) -60%
Explanation:
a) 8,000
b) Yes
c) -60%
) 8,000
a.the trader puts up=20000(1000*50%*40)
he lost $10000(1000*$10)
if he trader pays $2000 in dividend
the remaining margin=20000-10000-2000
$8000
b.) margin rate=equity /liability
8000/50000*100%=
16% , so we have a margin call
c.Equity decreases from 20000 to 8000 in 1 year
return= -12000/20000=-0.60
=-60%
Answer:
flexible budget amount for canoe sales revenue for April is $72000
Explanation:
given data
sell = 100 canoes
average sales price = $600
sold = 65
total sales = 130
canoes at an average price = $595
actual sales = 120 canoes
to find out
flexible budget amount for canoe sales revenue for April
solution
we know here for flexible budget april sale unit are = 120
and selling price is $600
so that April sales will be here = 120 × 600
April sales = 72000
so flexible budget amount for canoe sales revenue for April is $72000
