Answer:
Assume a speculator anticipates that the spot rate of the franc in three months will be lower than today’s three-month forward rate of the franc, .
a. The speculator can use $1 million to speculate in the forward market by purchasing a forward contract for 2,000,000 francs to be paid out in three months. This helps the speculator avoid losing money as the exchange rate decreases in period of three months.
b. Suppose the franc’s spot rate in three months is $0.40:
This means that the dollar is expected to appreciate in three months because its current rate is. It would take fewer dollars to purchase one franc in three months. The demand for dollars would increase because speculators looking to make a profit would hold as many dollars as possible while waiting for the currency to appreciate, then sell it for more than they purchased it for.
Hence, the speculator could make a profit of $0.10 on each franc.
Suppose the franc’s spot rate in three months is $0.60:
This means that the dollar is expected to depreciate in three months because its current rate is. It would take more dollars to purchase one franc in three months. The demand for dollars would decrease because speculators are expecting the currency’s value to fall in the coming three months.
The speculator would suffer a loss of $0.10 on each franc.
Suppose the franc’s spot rate in three months is $0.50:
This means that the value of the dollar is expected stay the same because its current rate is. It would take the same amount of dollars to purchase one franc in three months. The demand for dollars would remain constant.
The speculator would earn no profit no loss when the Franc’s spot rate in 3 months is $0.50.
Explanation:
PHASE 1: Accumulation
This period begins when you enter the workforce and begin setting aside funds for later in your life, and ends when you actually retire. If your employer offers 401(k), 403(b), or 457(b) plans, have you signed up and are you contributing the maximum allowed? Did you know that the "new normal" requires retirement savings rates for most Americans to exceed 10 percent? If self-employed, are you shortchanging yourself on Social Security in order to reap tax deductions?
PHASE 2: Pre-Retirement
This phase occurs during the final years of the accumulation phase and should begin when you reach 50 years old or are 15 years away from retiring, whichever happens first. Now is the time to get your plan in place, making sure your finances are lined up correctly for retirement day so nothing will be left to chance. If you work for a company with a benefits specialist, arrange an appointment to become informed about the various ways you can convert your employer retirement savings into a stream of income or an IRA. Consider using a tool known as "scenario planning." Start learning about Social Security and your options for beginning to receive retirement benefits. Familiarize yourself with the basics of Medicare.
PHASE 3: Early-Retirement
This phase lasts from the day you retire until you are 70 years old. (For those who do not plan to retire until well into their 70s, some tasks in this phase may occur later.) A key purpose of this phase is to create a clear communication channel with your family so information can be shared, questions asked and answered, and decisions made in a calm, supportive way. It's also the time to assess how well your finances are working now that you are using your retirement savings. Fine-tune your income and expense projections, taking into consideration how you will meet minimum distribution requirements from your tax-deferred accounts.
PHASE 4: Mid-Retirement
This phase begins at age 70 and lasts as long as you are able-bodied and high-functioning. Despite your good health, begin looking at what steps you would like your family to take should your condition decline significantly. In most cases your ability to make all your own decisions, care for yourself, engage with the world on your terms, and manage your affairs does not vanish in a split second. It takes courage to dive into a conversation about giving up and transferring control.
PHASE 5: Late-Retirement
This phase begins when your health has taken a turn for the worse and there is little likelihood of it being fully restored. You require significant help to function day to day. The hope is that by this point all the planning done in prior years makes this transition as manageable and life-affirming as possible.
Answer:
Worksite Analysis
Explanation:
Based on the information provided within the question it can be said that the final major component of the OSHA guidelines are Worksite Analysis. This component refers to the various actions that provide all the information needed to help an individual recognize and understand all the dangers and potential hazards of the workplace environment.
Answer:
Expected Value = $740
Expected profit = $22.2m
Explanation:
We can easily calculate the expected value and expected profit/loss in this situation by some minor working
Expected values = Expected Claim - per policy cost
Expected profit/loss = (Expected claim - per policy cost) x number of policies
As you can see per policy cost and no of policies are given in the question data we just need to find expected claim for calculation of expected profit or loss and expected value
Expected Claim = (1/100x$10,000)+(1/250x$40,000)+(1/400x$80,000)
Expected Claim = 100 + 160 + 200
Expected Claim = 460
Now we have a value of expected claim lets put it into Expected profit/loss formula and expected value formula
Expected value = 460-1200
Expected value = -740
-$740 is the value per policy
Expected profit/loss = (460 - $1200 per policy) x 30,000
Expected profit or loss = -22,200,000
Expected loss to the customer = -$22.2 m
Expected profit for the company = $22.2m
Answer:
Nonoperating
Explanation:
The activities through which revenue and expenses occur which do not take part in the operations of business is consider as nonoperating.
