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USPshnik [31]
3 years ago
10

Discuss the causes of changes in a currency swaps value over time. Is it possible to close out a currency swap before it reaches

maturity
Business
1 answer:
3241004551 [841]3 years ago
5 0

Answer: When a swap is agreed on by both parties involved, a cash flow of bonds in different currencies are agreed upon to be exchanged.

Explanation:

The cash flows of two bonds in separate currencies are negotiated upon to be traded when a swap is initiated. At the existing spot exchange rate, these bond-like cash flows have the same present value. Evidently, shifts in the exchange rate change the value of one side of the swap relative to the value of the other side of the swap. Furthermore, interest rate rises reduce the present value of currency.

The current value of cash flows is increased by flows and decreases in interest rates. Changes in interest rates and exchange rates thus offer meaning to currency swaps.

One side is triumphant and the other loses. By making the party that lost money in the swap pay this amount to the party that has gained value in the swap, it is possible to close a swap.

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An upscale organic foods grocery store chain is implementing an information system that will enable it to add same-day home deli
defon

Answer:

paradigm shift

Explanation:

Based on the information provided within the question it can be said that this is an example of a paradigm shift. This term refers to a fundamental change within an a company's or entity's set of discipline or norms of it's basic concepts. Which in this scenario adding same day home delivery drastically changes the basic concept of an in person organic food grocery store as people are able to order online and never have to set foot into the store. Which may even lead the store to close their brick and mortar store and function strictly online.

6 0
3 years ago
The following information relates to Jay Co.’s accounts receivable for the year just ended: Accounts receivable, 1/1 $ 650,000 C
ziro4ka [17]

Answer:

Gross A/R 1,085,000

Allowance<u>   (110,000)  </u>

Net A/R       975,000

Explanation:

Before allowance for uncollectible accounts:

This means we are asked for the gross accounts receivable:

beginning A/R + net credit sales - collection - write-off accounts:

650,000 + (2,700,000 - 75,000) - 2,150,000 - 40,000 =  1,085,000

Gross A/R 1,085,000

Allowance<u>   (110,000)  </u>

Net A/R       975,000

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