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sp2606 [1]
3 years ago
14

Which of the following is NOT a real option?a. The option to buy shares of stock if its price goes up.b. The option to expand in

to a new geographic region.c. The option to abandon a project.d. The option to switch the type of fuel used in an industrial furnace.e
Business
1 answer:
Dimas [21]3 years ago
8 0

Answer: A. The option to buy shares of stock if its price goes up.

Explanation: Among the above options the less real option is " to buy shares of stock if its price goes up". It is advisable by brokers to buy shares of stock when the prices are down and sell when the prices are up in order to make profit.

The other options are more real, because expansion of a business in a new geographic region will yield more profits. Abandoning a failed business project is advisable and switching from one type of fuel to another is done based on preference and cost.

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Assume the current U.S. dollar-yen spot rate is 125¥/$. Further, the current nominal 180-day rate of return in Japan is 3% and 4
statuscvo [17]

Answer:

124.39Y/$

Explanation:

Calculation to determine the approximate forward exchange rate for 180 days

Using this formula

Forward exchange rate/spot exchange rate = [(1+rh)/(1+rf)]*r

Where,

rh = periodic interest rate in the home currency

rf = periodic interest rate in the foreign currency

r=Spot rate

Forward exchange rate= [1+3%*180/360]/[1+4%*180/360]*125¥/$.

Forward exchange rate = 1.015/1.02* 125¥/$

Forward exchange rate= 124.39Y/$

Therefore the approximate forward exchange rate for 180 days is 124.39Y/$

6 0
3 years ago
Income __________ when there is zero beginning inventory and all inventory units produced are sold.
Natali5045456 [20]

Answer:

Income will be the same under both variable and absorption costing when there is zero beginning inventory and all inventory units produced are sold.

Explanation:

3 0
2 years ago
The Eks-Plore Company exports outdoor gear for firms on the east coast of the United States. The company identifies companies in
ANTONII [103]

Answer:

exporting trading company

Explanation:

Eks-Plore doesn't actually manufacture any outdoor gear. it provides trading services to companies that manufacture them. Eks-Plore sells goods produced in the US and exports them to foreign markets, e.g. European and Asian nations. This is a type of intermediary that is also responsible for located new potential markets where to sell the goods.

4 0
3 years ago
The demand for cable television is relatively elastic, because if the price gets too high, people will rent dvds or videos inste
elena-s [515]
The answer is the producer 
3 0
3 years ago
Read 2 more answers
A local distributor for a national tire company expects to sell approximately 9,530 tires of a certain size and tread design nex
Dahasolnce [82]

Answer:

the economic order quantity is 313 units

Explanation:

The computation of the economic order quantity is shown below:

= sqrt( 2 ×annual demand × ordering cost)  (carrying cost)

= sqrt(2 × 95,30 × $72) ÷ $14

= 313 units

hence, the economic order quantity is 313 units

The same should be considered and relevant

4 0
3 years ago
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