1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ann [662]
2 years ago
9

Don Howard is a trader who likes to make money based on changes in the foreigncurrency exchange market. Currently the spot rate

is 24.0239 MXN/USD and the3-month forward rate is 26.5693 MXN/USD. Clint thinks the exchange rate will moveto 25.3487 MXN/USD in the next three months. How can Don profit in the forwardmarket if he wants to trade USD1,000,000
Business
1 answer:
IrinaVladis [17]2 years ago
3 0

Answer:

Don profit in the forward market can be USD 48,152.37

Explanation:

Spot rate currently is at 24.0239 MXN/USD

Sell USD forward at 26.5693 MXN/USD

Profit on settlement after 3 months = (Selling price - buying price)*Number of units

Profit on settlement after 3 months = (26.5693 - 25.3487)*1,000,000

Profit on settlement after 3 months = MXN 1,220,600

The exchange rate is expected to move to 25.3487 by Clint

Hence, 1,220,600/25.3487 = USD 48,152.37

Don profit in the forward market can be USD 48,152.37 if hewants to trade USD 1,000,000

You might be interested in
As referred to in the NSMIA, the term "covered security" would apply to
koban [17]

Answer:

Correct Answer:

C) I and IV

Explanation:

In stock market, any security equal or senior to one listed on the NYSE is a covered security. Because, it is guaranteed by a Federal law. Municipal bonds are a covered security except in their state of issuance.<em> On the other-hand, Pink Sheet and OTC Bulletin Board securities are not considered covered.</em>

5 0
3 years ago
Inventory depletion is a warning sign of: Impending inflation. A recessionary gap. Cyclical unemployment. Both a recessionary ga
vovangra [49]

Answer:

Both a recessionary gap and cyclical unemployment.

7 0
3 years ago
An exchange economy has two consumers, named Jimmy and Sue, and two commodities, apples and bananas. Jimmy’s initial endowment i
Aleks04 [339]

Answer:

(a) BJ = AJ

In equilibrium, apples and bananas have the same price.

Jimmy’s consumption bundle must be 3 apples and 3 bananas

i just did this

Explanation:

mrk me brainliest pleasee

8 0
3 years ago
How many powered fork lift accidents occur each year
Scrat [10]
34,900 injuries a year and around 80deaths per year
8 0
3 years ago
Lefave, Inc., manufactures and sells two products: Product Q1 and Product D5. Data concerning the expected production of each pr
Travka [436]

Answer:

Predetermined manufacturing overhead rate= $29.59 per direct labor hour

Explanation:

Giving the following information:

Total direct labor-hours 15,755

Total overhead:

Labor-related DLHs= $172,482

Product testing tests= $68,909

General factory MHs= $224,825

Total= $466,216

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 466,216/15,755

Predetermined manufacturing overhead rate= $29.59 per direct labor hour

5 0
3 years ago
Other questions:
  • Joe has just moved to a small town with only one golf​ course, the Northlands Golf Club. His inverse demand function is pequals
    6·1 answer
  • Blossom Company reports operating expenses of $100,000, excluding depreciation expense of $17,000 for 2022. During the year, pre
    13·1 answer
  • The _____ training outcome is collected to determine whether trainees are using training content back on the job.
    14·1 answer
  • Individuals can now use the internet to publicly editorialize about the news through:
    7·1 answer
  • Deep South Sounds would like to spend $189,000 for new sound equipment. However, the company has a major loan maturing 3 years f
    10·1 answer
  • The basic principles that govern behavior and help people determine right from wrong are __________.
    13·1 answer
  • Consider the Smith family who have the following demand for rental housing (q, measured in square feet):
    12·1 answer
  • As part of the American Recovery and Reinvestment Act, $7 million was earmarked to build a bridge over a railroad crossing so th
    6·1 answer
  • The basic idea of time value of money is that $1 to be received in the ________ is worth ______$1 received today because of the
    12·1 answer
  • bobby and josephine are married and they work together. they have decided to maintain separation at work, though they are extrem
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!