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
oksian1 [2.3K]
3 years ago
15

What are spot rates and forward rates? Purple Panda Importers, a U.S. company, produces and exports industrial machinery oversea

s. It recently made a sale to a Japanese manufacturing firm for ¥625 million, but the Japanese firm has 60 days before it must make the payment to Purple Panda Importers The spot exchange rate is ¥132.78 per dollar, and the 60-day forward rate is ¥134.72 per dollar. Is the yen selling at a premium or at a discount in the forward market relative to the U.S. dollar? The yen is trading at a discount in the forward market. In the forward market, the yen is trading at a premium. If the customer pays Purple Panda Importers the ¥625 million today, how much will Purple Panda Importers receive in dollars? $5.42 million $4.24 million $5.89 million $4.71 million Assuming that the forward market is correct and the spot exchange rate in 60 days will equal the 60-day forward exchange rate today, Purple Panda Importers would get more dollars if the Japanese firm paid off its account .
Business
1 answer:
Fudgin [204]3 years ago
5 0

Answer:

1. As you have to spend more Yens for 1 USD at future date, it means that Yen is selling at discount in the forward market relative to the US Dollar.

2. The spot exchange rate is ¥132.78 per dollar, hence, total dollars Purple Panda Importers will receive today is ¥625 million/¥132.78 = $4.71 million

3.  Purple Panda Importers would get more dollars if the Japanese firm paid off its account <u>today</u>.That is, he will get more money if the account is paid today.

You might be interested in
The business environment consists of several factors that affect a business's ability to be successful and operate profitably.Cr
Damm [24]

Answer:

1. technological

2. Social

3. Competitive

4. Economic and legal

5. Global

Explanation:

environmental forces can be defined as those factors that have the ability to affect or influence how an organization or business operates.

based on the question, 5 environmental forces have been identified with each:

<u>1. Technological</u>

for Booksellers- Boarders, they eventually went bankrupt because of technological advancement that has made books readily available on the internet. so people easily go for these soft copies rather than the hardcopy that they used to.

<u>2. Social</u>

Snap for Seniors- Eve Stern is an entrepreneur who started a business. this is a social environment force that is involved in serving the needs of the elderly.

<u>3. Competitive</u>

blackberry- When the BlackBerry phone system quit working, it affected 70 million customers. Those customers turn to other cellphones which offered the reliable service business customers demand, at a lower price. customers are always likely to go to the side of the competition where prices seem to be fairer.

<u>4. Economic and legal</u>

Jeffries Roofing- Tom Jeffries owns Jefferies Roofing company. In his proposals, Tom describes materials to be used and a price. When the customer signs the bid, it becomes an enforceable contract.

<u>5. Global</u>

WalMart- In China, Walmart has nearly doubled in size and made "Made in China" stickers are visible all over Walmart stores in the United States.

7 0
3 years ago
Effective December 15th, 2018, the operating leases will be recorded: A) as an asset and liability on the balance sheet of the l
Shalnov [3]

Answer: C) on the balance sheet of the lessee with value equal to the present value of future lease payments.

Explanation:

According to IFRS 16 and US GAAP ASC 842 which commenced Jan 1, 2019 and Dec 15, 2018 respectively, Lease payments are to be recognized on the balance sheet of the Lessee at the present value of the future payments on the lease.

The discount rate to be used will be implicitly stated in the lease agreement if both parties were able to determine it.

4 0
3 years ago
Mason works at a toy assembly plant and is responsible for the various departments that perform different functions. he helps pe
julia-pushkina [17]

Based on the scenario above, Mason is likely to be the general manager. It is because he helps people in different departments in regards of specific tasks in which a general manager would do, while Julio is considered to be a functional manager because he makes sure that everyone in his department has the skills and training in which a functional manager is responsible of.

6 0
3 years ago
Jane decided to incorporate her business under the name of Star, Inc. Before Star was incorporated, Jane signed a contract with
BARSIC [14]

Answer:

D. Star will be liable on the contract only if it adopts the contract.

Explanation:

7 0
3 years ago
Piazza, a pedestrian, was injured when struck by a vehicle driven by Delaney, who ran a stop sign. At the time of the accident,
Ghella [55]

Answer:

Piazza should sue DGA Corporation because he (or she?) was struck by a company vehicle and the driver was acting within the scope of his normal employment tasks. Piazza might also sue Delaney along with DGA, since DGA is a small corporation and as a corporation is considered a separate legal entity whose shareholder equity might be really low.  

Piazza can sue for compensatory damages including pain and suffering, medical bills and lost wages.

6 0
3 years ago
Other questions:
  • Companies facing the challenge of setting prices for the first itme can choose between two board strategies; marketing-penetrati
    10·1 answer
  • During the past six months, 73.2% of US households purchased sugar. Assume that these expenditures are approximately normally di
    13·1 answer
  • Bright Daffodils Inc. operates in a state where the smoker's rights law is prevalent. Samantha, the HR manager at Bright Daffodi
    9·1 answer
  • Nikhil is a design manager for a production company. He independently assigns teams, chooses projects, researches trends, and is
    10·1 answer
  • A company has two products: standard and deluxe. The company expects to produce 43,681 Standard units and 39,390 Deluxe units. I
    7·1 answer
  • Describe two differences between Locke's and Maslow's theory of motivation..
    13·1 answer
  • Journalize the entry for Hot Rod Service using the following data from the payroll register: Regular earnings $16,370 Overtime e
    6·1 answer
  • The City of Mayville had total fund balance in its General Fund of $200,000 on December 31, 2019. The City of Maysville's Genera
    10·1 answer
  • The director’s collaborator who has various tasks such as taking notes, keeping track of blocking, and communicating with all th
    8·1 answer
  • ________ conservation involves the sampling, transferring, and storage of a species in a place other than the original location
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!