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kherson [118]
3 years ago
15

You are US company, 500,000 BP (British Pound) payable to UK in one year. Answer in terms of US$. Information for Forward Contra

ct: Forward exchange rate (one yr): 1.54 $/BP Information for Money Market Instruments (MMI): Current exchange rate: 1.50 $/BP Investment return at Aerion Fund Management (in UK): 4% annual Interest rate of borrowing from Bank of America (in USA): 2% annual Information you need for Currency Options Contract: Options premium: 0.015 $/BP Interest rate of borrowing from Bank of America (USA): 2% annual Allowed to exercise options at 1.54 $/BP If the break-even exchange rate for the Currency Options Contract is 1.46 $/BP, and you believe the exchange rate at the time of the payment would be 1.53 $/BP, should you sign the contract?
Business
1 answer:
inna [77]3 years ago
6 0

Answer:

why just 5 points? :( but thanks for the 5points atleast

Explanation:

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All things being equal, which will move more easily; a newly polished car or a car that has never been polished
mestny [16]

The newly polished one as there will be less resistance and will travel faster across it

8 0
3 years ago
On January 1, 2021, American Corporation purchased 25% of the outstanding voting shares of Short Supplies common stock for $210,
Usimov [2.4K]

Answer:

"$224,000" is the correct solution.

Explanation:

The given values are:

Corporation purchased percentage,

= 25%

Original investment,

= $210,000

Short's net income,

= $80,000

Paid cash dividend,

= $24,000

Now,

The share of net income will be:

= 25 \ percent\times 80,000

= 0.25\times 80000

= 20,000 ($)

The cash dividend will be:

= 25 \ percent\times 24,000

= 0.25\times 24,000

= 6,000 ($)

hence,

On December 31, 2021, the balance will be:

= Original \ investment+Net \ income \ share+Cash \ dividend

= 210,000+20,000+6,000

= 230,000-6,000

= 224,000 ($)

6 0
3 years ago
Given the following information, what is Macy’s market capitalization? Annual Sales $27.5B Annual Net Income $1.5B Earnings Per
Andrew [12]

Answer:

D) $21.6B

Explanation:

Market capitalization equals the total number of outstanding share multiplied by the sare price, therefore:

Market Capitalization = 360,000,000 shares x $60 price per share

                                    = $21,600,000,000

Thus, the total market capitalization is $21.6 billion

5 0
3 years ago
A company has beginning inventory of 10 units at a cost of $10 each on February 1. On February 3, it purchases 20 units at $12 e
Gre4nikov [31]

Answer:

b) $124

Explanation:

FIFO means first in, first out. Under this principle, goods that were purchased or produced earlier will be the first ones on sale.

The value of the goods sold in our case will be as follows.

The first ten items   @ $10: 10X10 =$100

Two items to make   [email protected] $12: 2x12=$24

 

Total cost: $100+$24= $124

7 0
3 years ago
Based on the Taylor Rule use the following information to calculate the target federal funds rate.
Gnesinka [82]

Answer:

8.0 %

Explanation:

inflation gap = 3 - 2 = 1

=3 + 2 + (.5 x 1) + (.5 x 5)

= 8.0

4 0
3 years ago
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