1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
slava [35]
3 years ago
14

FAB Corporation will need 200,000 Canadian dollars (C$) in 90 days to cover a payable position. Currently, a 90-day call option

with an exercise price of $.75 and a premium of $.01 is available. Also, a 90-day put option with an exercise price of $.73 and a premium of $.01 is available. FAB plans to purchase options to hedge its payable position. Assuming that the spot rate in 90 days is $.71, what is the net amount paid, assuming FAB wishes to minimize its cost
Business
1 answer:
fgiga [73]3 years ago
7 0

Answer:

$144,000

Explanation:

Calculation to determine net amount paid, assuming FAB wishes to minimize its cost

Net amount: ($.71 + $.01) x 200,000

Net amount = $144,000.

Therefore net amount paid, assuming FAB wishes to minimize its cost is $144000

You might be interested in
Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a?
puteri [66]

Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a controllable variance. Therefore, the option B holds true.

<h3>What is the significance of controllable variance?</h3>

Controllable variance can be referred to or considered as a variance that computes the difference between the actual quantity and the budgeted quantity sold or consumed by a firm in an economy. It can never be deficit, and is always in surplus of the budgeted amounts.

Therefore, the option B holds true and states regarding the significance of controllable variance.

Learn more about controllable variance here:

brainly.com/question/13985361

#SPJ4

The question seems to be incomplete. It has been added below for better reference.

Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a:

a. quantity variance

b. controllable variance

c. volume variance

d. rate variance

8 0
1 year ago
the percent of sales method for estimating bad debts uses only income statement account balances to estimate bad debts. group st
crimeas [40]

The statement that the percent sales method for estimating bad debts for a company, will only use those balances in the income statement is False.

<h3>What is the percent of sales method?</h3>

The percent of sales method is one of the methods that companies can use to estimate the bad debts that it expects in a given period. Bad debts refer to those Account Receivables that will not pay the company back even after they have taken goods or services on credit. In order to be able to use the percent of sales method, the sales of a company need to be known.

The sales that a company makes includes both the sales that the company made and the accounts receivable. The Accounts Receivables go to the Balance Sheet and Sales go to the Income Statement. This means that the Balance Sheet balances are used as well as Income Statement balances and not just the latter.

Find out more on the percent of sales method at brainly.com/question/13958992

#SPJ1

6 0
1 year ago
Saar Associates sells two licenses to Kim &amp; Company on September 1, 2021. First, in exchange for $100,000, Saar provides Kim
Vladimir79 [104]

$110,000 revenue will Saar recognise in 2021 under this arrangement

Solution:

First, in exchange for $100,000

Second, in exchange for $90,000

Saar provides Kim with a three-year right to market Kim's financial advisory services under the name of Saar Associates , Whereas to calculate the revenue :  \frac{4}{36} = \frac{1}{9} ( 90,000)

So , 100,000 + 10,000 = 110,000

6 0
3 years ago
If the expected sales volume for the current period is 7,000 units, the desired ending inventory is 400 units, and the beginning
Ksivusya [100]

Answer:

7,000 units

Explanation:

Calculation for the number of units set forth in the production budget, representing total production for the current period

Using this formula

Number of units =Current period +Ending inventory - Beginning inventory

Where,

Current period =7,000 units

Ending inventory=400 units

Beginning inventory =400 units

Let make plug in the formula above

Number of units =7,000 units + 400 units-400 units

Number of units =7,000 units

Therefore the Number of units will be 7,000 units

5 0
3 years ago
In 2014, paxson incurred a net loss of $2,500. no dividends were declared or paid during 2014. what was paxson's retained earnin
tensa zangetsu [6.8K]

Paxson's retained earnings balance one year earlier on December 31, 2013 was $24,500.00

8 0
3 years ago
Other questions:
  • Which of the below statements is inaccurate?
    5·1 answer
  • Evelyn took out a car loan for $16,125 that has a 0% APR for the first 14 months and will be paid off with monthly payments over
    9·1 answer
  • ​japan's largest paper​ company, nippon​ seishi, has decided to own huge forests and corresponding processing facilities in​ aus
    5·1 answer
  • Samarium is a "rare-earth" element that is used to produce magnets with permanent magnetization, drugs for chemotherapy, control
    8·1 answer
  • A test that determines whether disease is actually present is
    12·2 answers
  • Find the price of a corporate bond maturing in 5 years that has a 5% coupon (annual payments), a $1,000 face value, and an AA ra
    9·2 answers
  • Cedric Company recently traded in an older model computer for a new model. The old model's book value was $140,000 (original cos
    11·1 answer
  • Poorer countries have historically been responsible for the bulk of world carbon emissions because of poor technology and enviro
    8·1 answer
  • WILL GIVE BRAINLIEST!! NEED ASAP
    15·1 answer
  • Profit-sharing plans, commissions, bonuses, and stock options are examples of:.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!