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Firlakuza [10]
3 years ago
12

You can borrow and lend at the interest rates of 7.00% in the US and 5.00% in Canada. Based on Interest Rate Parity, the forward

premium for CAD should be exactly equal to: Group of answer choices 1.90% - 1.87% 1.02% 98.11%
Business
1 answer:
LUCKY_DIMON [66]3 years ago
7 0

Answer:

1.90%

Explanation:

Note that that CAD exchange rate would be in terms of how many US dollars can be exchanged for 1 CAD, which means that the formula for forward premium would be stated in terms of US dollars, I mean the US$ as the numerator and CAD's interest rate would be the denominator

the forward premium for CAD=((1+US interest rate)/(1+Canada interest rate))-1

the forward premium for CAD=((1+7%)/(1+5%))-1

the forward premium for CAD=1.90%

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Furkat [3]
Number one is B, number two is C, number three is A, number four is d. I think
7 0
3 years ago
Spade Agency separates its accounts receivable into three age groups for purposes of estimating the percentage of uncollectible
tankabanditka [31]

Answer:

a. total estimated uncollectible accounts is $21,190

b. to entry the adjustment, we have to debit bad debt expense and credit allowance for doubtful accounts in the amount of $14,690

Explanation:

a. to compute the estimated uncollectible accounts, we have to multiply the specific % to the accounts receivable plus the beginning balance;

•Accounts not due

$36,000 x 4% = $1,440

•Accounts 1 - 60 days past due

$21,000 x 25% = $5,250

•Accounts more than 60 days past due

$16,000 x 50% = $8,000

So the total uncollectible accounts would be; $6,500 + $1,440 + $5,250 + $8,000 = $21,190

b. to record the year-end adjustment of the uncollectible accounts, we have to debit bad debt expense and credit allowance for doubtful accounts in the amount of $14,690. This figure is the uncollectible amount we computed earlier based on the aging.

6 0
3 years ago
If you had a put option on the first of the month with an exercise price of $18 and if the option also expires on the first, the
zaharov [31]

If you had a put option on the primary of the month with an exercise rate of $18 and if the option also expires on the first, the fee of the choice might be: increase

A put option offers you the proper, but no longer the responsibility, to promote an inventory at a specific rate (known as the strike charge) by way of a particular time – at the choice's expiration. For this right, the put buyer can pay the seller an amount of cash referred to as a premium.

An instance of a put option: by purchasing a positioned option for $five, you now have the right to promote 100 shares at $a hundred in step with share. If the ABC organization's stock drops to $80 then you may exercise the option and sell a hundred shares at $100 according to proportion resulting in a complete profit of $1,500.

A put option is an agreement that offers its holder the proper to promote a number of fairness shares at the strike price, earlier than the option's expiry. If an investor owns stocks of stock and owns a placed choice, the option is exercised while the stock fee falls under the strike price.

Learn more about put option here: brainly.com/question/4490636

#SPJ4

6 0
2 years ago
"According to the Uniform Securities Act it is unlawful for an investment adviser to tell a client that the administrator:"
nlexa [21]

Answer:

According to the Uniform Securities Act it is unlawful for an investment adviser to tell a client that the administrator is explained below in details.

Explanation:

Any investment adviser needed to be enrolled to employ an investment adviser spokesperson unless the investment adviser spokesperson is enrolled following this act, present that the enrollment of an investment adviser spokesperson is not valid throughout any period when he is not contracted by an investment adviser recorded under this act.

4 0
3 years ago
When other factors such as health and illiteracy rates are added to global comparisons of GDP and population, which of the follo
Andru [333]

Answer:

The answer is B. very wide differences in the standard of living

Explanation:

Economists use Gross Domestic Product (GDP) which is the final value of all goods and services produced within a country during a given period of time, usually a year as the ultimate yardstick for measuring and ranking countries' wealth, standard of living and/or illiteracy level.

And GDP per capita measures a country's economic output per person. It is by dividing the GDP of a country by its total population. Countries with the highest value are known to have a high standard of living, better health care and high literacy level and vice-versa.

5 0
4 years ago
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