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Art [367]
3 years ago
15

Laura Cervantes is a currency speculator and she sells eight June futures contracts for 500,000 pesos at the futures price of 0.

10773 $/MXN.
a) What is the value of her position at maturity if the ending spot rate is $0.12002/MXN?
b) What is the value of her position at maturity if the ending spot rate is $0.09802/MXN?
Business
1 answer:
Alecsey [184]3 years ago
8 0

Answer:

500,000 Pesos (MXN) is the June Futures Contract

Number of Contracts Sold = 8

Initial Exchange Rate = 0.10773$ / MXN

Initial Position Value = 8 x 500000 x 0.10773

Initial Position Value = $430,920

i. Final Exchange Rate = $0.12002 / MXN

Final Position Value = 8 x 500000 x 0.12002 = $480,080

Net Position Value = 430920 - 480080 = - $49,160

ii. Final Exchange Rate = $0.09802 / MXN

Final Position Value = 8 x 500000 x 0.09802 = $392,080

Net Position Value = 430920 - 392080 = $3,884

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4 years ago
Shareholders exercise ownership control through the power of their votes. Group of answer choices False True
vivado [14]

True, Shareholders exercise ownership control through the power of their votes.

<h3>What is Shareholder Ownership ?</h3>

Common shareholders are part of the owners of a corporation, they have bought some shares or stocks of the corporation either through public offerings or the the Stock markets.

As part of the owners of a corporation, common stock holders have certain rights except otherwise stated in the agreement.

  1. The right to vote during the general meeting to decide how the leadership of the corporation will be.
  2. The right to share in the profits of the corporation.
  3. Common shareholders are notified before issuance of new stock.
  4. They have some degree of control over the management selection process etc.

A corporation is owned by it's shareholders as a group. Each shareholder holds a proportion of the share capital of a corporate and has voting rights in proportion of his shareholdings.

Therefore , we can conclude that the statement is TRUE.

Learn more about Shareholder Ownership on:

brainly.com/question/1422887

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5 0
2 years ago
What is transformational leadership? Give examples of organizational situations that would call for transformation, transactiona
gulaghasi [49]

Answer:

In Transformational leadership the leaders works to motivate and engage the followers by directing their behavior toward a shared vision.

Explanation:

An example of Transformational leadership would be when a new Company is formed and employees are motivated to work towards a common long term objective or when an established Company enters into a new Line of Business or launches a new Product.

In Transactional leadership the leader’s focus is on the role of supervision, organization, and collective performance of a group. They are concerned about the status quo and day-to-day progress toward goals. The transactional model is likely to be successful in a crisis situation or in projects that require linear and specific processes. This model is also useful for managing big Portfolios in Banks or Asset management Companies.

In Charismatic leadership the leader works on encouraging particular behaviors in others by way of eloquent communication, persuasion and force of personality. Such leaders motivate their followers to get things done or improve the way certain things are done. An example of Transformational leadership would be when a new Company is planning to expand and Takeover a new Company in the same Line of Business or when and Organization tries to achieve the best in the Industry award. This is the situation when power of speech and communication is required to persuade and motivate the people working in the Organization.

8 0
4 years ago
Suppose when a monopolist produces 50 units its average revenue is $8 per unit, its marginal revenue is $4 per unit, its margina
Mamont248 [21]

Answer:

b. The monopolist is currently maximizing profits, and its total profits are $250

Explanation:

The computation of monopolist is shown below:-

The monopolist is producing 50 units ate which are

MR = $4

Price = $8

MC = $4

ATC = $3

This applies that

MR = MC

while

P > ATC

So the monopolist is making a profit by making profit-maximizing quantity.

Total profits are (P - ATC) × Q

= (8 - 3) × 50

= $250

Hence, b option is correct

5 0
3 years ago
The Bert Corp. and Ernie, Inc., have both announced IPOs. You place an order for 1,150 shares of each IPO. One of the IPOs is un
Tems11 [23]

Answer:

The Bert Corp. and Ernie, Inc.

The profit expected is:

= $2,875.

Explanation:

a) Data and Calculations:

                           The Bert Corp.    Ernie, Inc.

IPO order placed  1,150 shares      1,150 shares

Underpriced by       $18.00

Overpriced by                                   $6.50

Profited expected    $10,350          -$7,475

Net profit = $2,875 ($10,350 - $7,475)

b) The profit expected is generated from the underpriced stock.  This profit is reduced by the increased cost incurred on the over-priced stock.  Therefore, the net profit is the difference between the profit and the additional cost incurred.

8 0
3 years ago
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