Answer:
Cachita should buy put on yen
Explanation:
Given:
The current spot rate = ¥120.00/$
in US $/¥ = 
or
in US $/¥ = 0.0083
Maturity time = 90 days
Put on Yen Call on Yen
Strike Price 125/$ 125/$
Strike Price in $/¥ 0.008 0.008
Premium 0.00003/$ 0.00046/$
Therefore,
Here the strike price for put on Yen and call on Yen are same
but the premium for Put on Yen is less than the premium for the call on Yen
Therefore, Cachita should buy a put on yen to get the profit from the rise of the dollar
Answer:
Correct option is A
“The flow of dollars between sellers of jewelry and clothing and buyers of jewelry and clothing” is the correct option
Explanation
It is a curve which shows various combination for the amount of two goods among which they can be produced with in the given available resources. Thus, it shows that the maximum amount of output is produced with the help of given resource.
Answer:
The explanation of this question is given below in the explanation section.
Explanation:
In this question, two different scenerios are given regarding two different economic theory. First, we will know that what is Keynes and Hayek economic theory and then do drag the label to correct situation.
Keynes's economic theory
This theory says the government should increase demand to boost growth. Keynesians believe consumer demand is the primary driving force in an economy. As a result, the theory supports expansionary fiscal policy. Its main tools are government spending on infrastructure, unemployment benefits, and education. A drawback is that overdoing Keynesian policies increases inflation.
Hayek's economic theory
This thoery says that how changing prices relay information that helps people determine their plans is widely regarded as an important milestone achievement in economics
Hayek says that markets will heal themselves and that government should not intervene. Keynes says that governments should intervene in order to soften the blow of a depression/recession.
So, the correct labels for these scenerios are:
Keynes:
A small Caribbean island's economy depends on tourism. However, in recent times, it has seen much less economic activity. Its government decides to let the market correct the situation.
Hayek:
Flour prices have risen in a country where bread is a staple part of the diet. As a result, bread prices have risen tremendously. In an effort to make bread affordable for its citizens, the government has limited how much
bakers can charge for bread.
Answer:
For the cost of goods sold, the company made around $42,435
Explanation:
Solve cost of goods for Jan. 1st:
2000 units × $8
$16,000
Solve for cost of goods during 2007:
5000 units × $10
$50,000
Use the formula for weighted-average cost:
WAC per unit = cost of goods available for sale / units available for sale
WAC per unit = 16,000 + 50,000 / 2000 + 5000
WAC per unit = 66,000 / 7000
WAC per unit = 9.42857..... I will round to a dollar value
WAC per unit = 9.43
For cost of goods <em>sold</em>:
4,500 × 9.43 (please keep in mind 9.43 is a rounded number)
$42,435
Answer:
Dollar value LIFO retail method
Explanation:
Dollar-Value LIFO aim to reduces the effect of the liquidation, allows companies to use FIFO internally and also reduces clerical costs.
Dollar value LIFO retail method are retailers way of getting or achieving the LIFO cost flow without monitoring individual units and this may lead to low liquidation of LIFO cost layers that could occur during tracking.
