Answer:
C) Exports decrease, imports increase
Explanation:
If the US dollar appreciates, the US dollar has now more value per unit of foreign currency than before. For example, suppose that today 1 US dollar buys 0.8 Euro, and tomorrow, Europe is hit by a financial crisis, and the US dollar appreciates, and buys 1.2 Euro. The US dollar has appreciated, has become more expensive, becomes now more euros are needed to buy 1 US dollar.
When the US dollar gains value, domestic goods become more expensive compared to foreign goods, and this promotes imports, and reduces exports.
This is the reason why China keeps a depreciated currency: China is an export economy and the cheap Chinese currency makes exports cheaper, and imports more expensive.
Economic capital is productive, so it does not include Money.Economic capital is the amount of risk capital held by a financial services company to enable it to survive any difficulties such as market or credit risks. Money is used to purchase various factors such as raw materials, machinery, labor which help in the production of goods, but money itself does not directly help in the production of goods. The real capital consists of machinery, buildings, tools, factories, tractors, etc, which directly assist in the production of goods
Answer: Net loss = $2
Explanation:
Given that,
Purchase one IBM July 120 put contract for a premium of $5
IBM stock is at $123 per share on the market
In buying these kind of call option, a person can makes the profit if the future price of the share is greater than the strike price.
Here,
Profit = $123 - $120 = $3
But, we have to deduct the premium paid that is $5
Therefore,
Net loss = Profit - premium paid
= 3 - 5
=$2 ⇒ This much loss realize on a the investment.
Answer:
$12,000
Explanation:
Take 20 pieces $20 average price per piece 30 days
= $12,000 expected sales for the month
