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]
3 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]3 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
291. Much of the hope for continued improvement of the economy lies in the projection of increasing consumer spending this year.
sergij07 [2.7K]

Answer:

The correct answer is E:

Much of the hope for continued improvement of the economy lies in the increase in consumer spending that is projected for.

Explanation:

i. Much of the hope (this is the main Subject of the conversation)

ii. for continued improvement (this is the Prepositional phrase. It modifies the noun “hope”)

iii. of the economy (this is a Prepositional phrase – it modifies the noun “improvement”)

iv. lies in the projection (This is the main Verb – “lies”)

v. of increasing consumer spending this year. (This is the prepositional phrase. It modifies the noun “projection”)

At first glance, it would appear that the positive experience that is anticipated is the projection.

<em>A projection (unqualified) in this case is an estimate of how a thing will be in the future.</em>

Having stated this, we see that it is more logical to hope for a positive experience that will occur than to just hope. Hence the hope is really in the increase in consumer spending not in the projection as a separate word.

(E) therefore is the Correct option because in this option that in this option “that” modifies “increase”.

Cheers

8 0
3 years ago
Georgia, a widow, has take-home pay of $600 a week from her part-time job. Her disability insurance coverage replaces 70 percent
MariettaO [177]

Answer:

Disability benefit = $5,040

Explanation:

Given:

Pay off per week = $600

Insurance coverage = 70 percent = 0.70

Waiting period = 4 week

Computation of disability benefits:

Disability benefit = Per Week benefit × Total Number of Covered weeks

= (Insurance coverage × Pay off per week) × (off work - Waiting period)

= (0.70 × $600) × (16 - 4)

= $420 × 12

= $5,040

4 0
3 years ago
2020 Under what conditions is it ethically defensible to outsource production to the developing world where labor costs are lowe
fomenos

Answer:

Morally, how about we start with business morals. Extensively business morals spin around progressively the estimation of the business to investors or partners (contingent upon the type of private enterprise). In the event that redistributing work diminishes costs and converts into expanded benefits for the organization, that is sufficient to consider it in accordance with the all-encompassing order of the business whether or not there is a decrease in cost for the buyer.  

Is it morally wrong to use innovative advances to build creation productivity when request in a market is generally inelastic? Cultivating used to be 40% of American employments. Presently it's generally 2% but then out creation has developed.  

Long haul the pulverization of a class of business is regularly counterbalanced by the formation of another classification the requires increasingly psychological assets. Actually, whole new enterprises can be made. So it is additionally not so much exact to restrict your view to simply the individuals who are dislodged from their occupations. It is completely conceivable that the net impact on the economy is sure.  

Be that as it may, again morals are increasingly emotional and have to do with the type of private enterprise to which one buys in, political way of thinking, and perspective on social duty of business.

7 0
3 years ago
Read 2 more answers
A june sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit. the desired ending inventory
ohaa [14]
Purchases = Sales units + Closing inventory - Beginning Inventory
                  = 6,000 + (1,000 * 115%) - 1,000
                  = 6,150 units
7 0
3 years ago
When the interest rate in an economy increases, it is likely the result of either: an increase in the government budget surplus
SIZIF [17.4K]

Answer: c). a decrease in the government's budget surplus or an increase in its budget deficit.

Explanation: Budget surplus refers to the excess of government revenue from taxes and other sources over its expenditure. While, budget deficit refers to the excess of government expenditures over its revenue.

BS= T>G

BD= G>T

A decrease in the government's budget surplus or an increase in its budget deficit leads to an increase in the interest rate in the economy. Thus the correct option is c.

5 0
3 years ago
Other questions:
  • Globalization is the process of the world becoming more connected. Like any process that involves economic choices, it has posit
    12·2 answers
  • Increasingly, the large assembly line factories, in which an individual worker performs a single task (or set of tasks) is being
    13·1 answer
  • On april 6, apple entered into a signed contract with bean, by which apple was to sell bean an antique automobile, having a fair
    8·1 answer
  • Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producin
    15·1 answer
  • Following her 18th birthday, Madison began investing $41 at the end of each week in an account earning 5% per year. She plans to
    13·1 answer
  • Why do you think special riders are necessary to cover jewelry, stamp collections, coin collections, and laptop computers?
    11·1 answer
  • Ecology Co. sells a biodegradable product called Dissol and has predicted the following sales for the first four months of the c
    11·1 answer
  • There is a bond that has a quoted price of 110.547 and a par value of $2,000. The coupon rate is 7.05 percent and the bond matur
    10·1 answer
  • What percentage of donald (dax) cowart's body was burned in the fire on july 23,1973?
    11·1 answer
  • What is one of the most important responsibilities of the dental office business assistant?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!