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kupik [55]
3 years ago
14

A U.S. firm has sold an Italian firm €1,000,000 worth of product. In one year the U.S. firm gets paid. To hedge, the U.S. firm b

ought put options on the euro with a strike price of $1.65. They paid an option premium $0.01 per euro. If at maturity, the exchange rate is $1.60,
Business
2 answers:
Paraphin [41]3 years ago
7 0

Answer:

The firm will realize $1,640,000 on the sale net of the cost of hedging.

Explanation:

Nimfa-mama [501]3 years ago
5 0

Answer:

Since the US company paid $0.01 per euro for the put option, they will receive ($1.65 - $0.01) x 1,000,000 = $1,640,000 when they execute their option. That will result in a net gain of $1,640,000 - $1,600,000 (the current exchange rate) = $40,000. Since the exchange rate was lower than the put option rate, the company was able to make a gain.

Explanation:

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Answer:

a. $612

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Explanation:

a. Overhead is applied at a rate of $12 per direct labor hour.

Overhead applied would therefore be;

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b. Total Cost = Direct labor cost + Direct Material cost + Manufacturing overhead

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3 years ago
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3 years ago
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lapo4ka [179]

Answer:

The correct option is D: $8.60

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If we substitute the value of these variables in the equation, we get:

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3 0
3 years ago
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zheka24 [161]

According to a recent survey, 80 percentage of local police agencies has experienced a "measurable increase" in the reporting of computer and electronic crimes.

What is electronic crimes?

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3 0
7 months ago
No one answered my question​
olga2289 [7]
Well what was your question maybe i can help
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3 years ago
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