If the number is 12,759 and they ask to round to the nearest 10,000 then you look at the thousands place (where the 2 is) and is its less than 5 round down and if its more round up. so the answer would be 10,000
Answer: Transaction exposure
Explanation:
Transaction exposure, is a form of foreign exchange risk that is faced by the organizations that take part in international trade. It occurs when the fluctuation in exchange rate change a contracts value before it is settled.
It is concerned with the effect of exchange rate changes on individual transactions, most of which are short-term affairs that will be executed within a few weeks or months.
Answer:
Lower Bound (Minimum Value) of Put Option = Max. of ( 0 , S * E-rt - C) (In Bold is PV of S)
where, C = Spot Price / Current Price , S = Exercise Price/ Strike Price, Rf= Risk free rate , t is tenure in pa, E is Exponential
= Max. of (0, 30 * E-rt - 35)
= max. of (0, 28.5 - 35) = Max of (0, -6.5)
Thus 0 is the Minimum Bound.
At below 0 say -0.1 (Impracticle Put Buyer will never receive OP)
At Above 0 say 0.1; Gain/ Loss = PV of 30 -35 - OP =28.85 -35 - 0.1 = -6.25 Loss i.e No Arbitrage Opportunity.
Explanation:
Answer:
Historical costs is objectively and precisely measured, whereas market values can be difficult to estimate, and different analysts would come up with different
values.
Explanation:
In preparing a balance sheet it is customary for a company to value the assets and other items based on historical costs rather than market values.
For example if an asset is purchased at $20,000, this value will reflect in the balance sheet in subsequent years. Or future calculation will be based on this.
Let's say yearly depreciation is $1,000 then after on year the value will be $19,000, after two years $18,000 and so on.
This is more object than market value which varies at any one time.
Market value for an item will vary depending on location and the market.
