Answer:
raise the value of foreign‑currency put options and lower the value of foreign‑currency call options
Explanation:
Options are the ability of an investor to buy or sell an asset. A call option is the choice to buy an asset at a particular price on or before a particular date.
A put option is the choice to sell an asset on or before a particular date.
As foreign interest rate increases and exchange rate is constant, the value of the foreign currency decreases therefore resulting in a decrease in value of call options.
This also results in an increase in value of put options
Variable cost refers to the costs of production that fluctuate depending on the number of units produced.
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The cost of any product that changes based on the quantity of goods that are produced. The volume that is produced decides the fluctuations in the variable cost. Fixed cost is the cost that will not change based on the number of units of the goods that is produced. Rent of a building can be considered as a fixed cost.
Example for variable cost may be raw materials cost, packaging cost,etc. Variable cost can be calculated by adding up the cost of labor and raw materials that are used in the production of one unit of a good. The total variable cost can be calculated by multiplying variable cost per unit with the number of units produced.
Answer:
Her rate of commission is 2 percent
Explanation:
Commission= $4800
Sale of property = $240,000
Rate of commission = (Commission/ Sale Of Property )* 100
Rate of commission= $ 4800/ $ 240,000 * 100
Rate of commission= 0.02 * 100
Rate of commission= 2%
The above solution can be checked by putting in the values of percent and commission
(Check)
2% of $ 240,000
= (2/100) * $ 240,000
= 2* $2400
= $ 4800
Thus 2 percent of $ 240,00 is equal to $ 4800
Answer:
The answer is given below;
Explanation:
The entry at the time of sale was;
Bank Dr.$100,000
Land Cr.$50,000
Gain on Land Cr.$50,000
At the time of consolidation, elimination the entry will be;
Retained Earnings/gain on land Dr.$50,000
Land Cr.$50,000
Answer:
2%
Explanation:
Data provided in the question
Generated rate of return = 10%
The rate of return on the portfolio = 8%
The rate of return on the index = 6%
Based on the above information, the active rate of return is
= Generate rate of return - the rate of return on the portfolio
= 10% - 8%
= 2%
It shows the difference between the benchmarked portfolio and the generated rate of return and the same is applied
