Assuming the 30-day forward exchange rate was $1 = 130 and the spot exchange rate was $1 = ×120, the dollar is selling at a premium on the 30-day forward market.
An over-the-counter market known as a forward market determines the price of a financial instrument or asset for future delivery. Although a variety of assets can be traded on forward markets, the phrase is most frequently used to refer to the foreign currency market.
Minimizing risk and fixing the price of an asset or financial instrument for the future is one of the forward market's primary goals. Any party can enter into a contract through the forward market when they want to reduce risk and fix the price of any asset or financial instrument.
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The original price was 84 dollars
Answer: Planning
<span>Controlling, leading, planning and organizing are four functions of a manager. If your aim is to improve the efficiency of your business unit, you ought to review the latest productivity and efficiency metrics to identify ways to keep inventory costs down. You set a goal to keep inventory costs down so you are in the planning stage. In the planning process, you need to know information needed to make effective management decisions like resources and productivity. </span><span> </span>
Answer:
The maximizing profit strategy
Explanation:
When companies decides to use mathematical process in determining pricing, they are opting for profit maximizing strategy. Profit maximization is the situation in sales whereby profit are highest. Calculus is usually used in calculating the profit maximizing number of units produced. The level of output chosen for profit maximization is when the marginal cost equals the marginal revenue. This is the level at which the price is determined. Profit maximization analysis is a mathematical approach that helps organizations determine the price and output level that returns the greatest amount of profit.