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seraphim [82]
3 years ago
13

On December 1, 20x1 Pimlico made sales to a customer in India and recorded Accounts Receivable of 10,000,000 rupees. The custome

r has until March 1, 20x2 to pay. On December 1, 20x1, Pimlico paid $500 for a put option to sell rupees at a strike price of $2.30 per 100 rupees on March 1, 20x2, which was the spot rate on December 1, 20x1. On December 31, 20x1, Pimlico's Fiscal Year End, the spot rate was $2.80 per 100 rupees and the option premium was $0.004 per 100 rupees. What is the fair value of the option on December 31, 20x1
Business
1 answer:
Mashcka [7]3 years ago
3 0

Answer:

Total value (5,400)

Explanation:

10,000,000 rupees

option to sale ruppes at $2.30

2.3

The spot rate was 2.80

Option Premium:

10,000,000 / 100 x 0.004 = 400

Stop difference:

(2.80 - 2.30) x 10,000,000 / 100  = 5,000

Total value (5,400)

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7 0
3 years ago
Costs, also called differential costs, are the additional costs from selecting a certain course of action.
Ilia_Sergeevich [38]

It is true that Costs, also called differential costs, are the additional costs from selecting a certain course of action.

<h3>What is differential costs?</h3>

Differential cost serves as the  difference between the cost of alternative decisions.

Therefore, It is true that Costs, also called differential costs, are the additional costs from selecting a certain course of action and the  cost do take place when a business have several similar options,

Learn more about differential costs, at

brainly.com/question/25799822

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8 0
2 years ago
What is the effect of a​ $1 specific tax collected from producers on equilibrium price and quantity if demand is perfectly elast
Sever21 [200]

Remember that a perfectly elastic demand is a demand where any price increase would cause the quantity demanded to fall to zero, and reducing the price of a good or service will not increase sales.

Also, equilibrium price is the market price where the quantity of goods supplied is equal to the quantity of goods demanded. This is the point at which the demand and supply curves in the market intersect.

Finally, equilibrium quantity is when supply equals demand for a product.

Therefore, the answer to this question is:

Price  is unchanged  and quantity  is unchanged

Answer:

Price:

b. unchanged

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5 0
3 years ago
The past five monthly returns for PG&amp;E are −3.17 percent, 3.88 percent, 3.77 percent, 6.47 percent, and 3.58 percent. Comput
maksim [4K]

Answer:

3.22%

Explanation:

Standard Deviation is the quantity that shows how much a each element of a group differs from the mean of the group on average.  

Standard Deviation of the PG&E's monthly return is 3.22%. All the calculations and workings are done in an MS Excel file, which is attached with this answer, please find it.

Download xlsx
6 0
3 years ago
A Six Sigma deployment can be deemed effective even if the number of defects are not reduced to 3.4 defects per million. True Fa
Damm [24]

Answer:

False.

Explanation:

Six Sigma is a quality control standard that was developed by Motorola Inc in 1986. It aims to reduce defects in goods produced.

While production cycle remains constantor faster, the quality of output should be kept below 3.4 defects per million.

Six Sigma is now applied in various fields like customer service to ensure customer retention, and management strategies.

So the statement above is false, defects must be kept below 3.4 per million to comply with Six Sigma standard.

7 0
3 years ago
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