1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
A maker of soaps and lotions noticed a blind person having difficulty comparing products while shopping in one of her stores. Sh
Darina [25.2K]

Answer:

Proactive

Explanation:

Did the test myself

7 0
3 years ago
Hansel and Gretel, a married couple, manage apartments and they are required to live in the managers’ apartment as a condition o
Alex

<u>Answer:</u>$0

<u>Explanation:</u>

Hansel and Gretel receive $600 as house rent allowance and they pay the same $600 towards the rent for their stay in the manager's apartment. If they live in a different building they would only pay $500 then they could save $100 which is the opportunity cost lost by them.

They do not have a gross income as the income and allowance are equal there is no gross income. They cannot even move on to other building as per the job agreement they have to stay at the manager's house which makes it impossible for them to earn gross income when in this job agreement.

3 0
3 years ago
which is an implied power of the federal government? raising taxesregulating tradedrafting soldiersdeclaring war
mars1129 [50]

Drafting soldiers is an implied power of the federal government.

According to Article I, Congress has the authority to make provisions for the general welfare and common defense of the United States. However, the establishment of a forced draft for enlistment in the military is an implicit power that has been exercised at various points in American history, from the Civil War until 1973.

Another well-known example of implied powers is the ability to form an army through a draft. For instance, the Constitution does not expressly permit the use of a draft prior to America's participation in World War II.

The ability to declare war, provide for and maintain a Navy, create and fund Armies, and equip, direct, and summon a militia all fall under the purview of Congress.

To learn more about Constitution refer to:

brainly.com/question/19411179

#SPJ4

7 0
2 years ago
You own a portfolio of two stocks, A and B. Stock A is valued at $84,650 and has an expected return of 10.6 percent. Stock B has
Gnesinka [82]

Answer:

Portfolio return = 0.1004646154 or 10.04646154% rounded off to 10.05%

Option B is the correct answer

Explanation:

The expected return of a portfolio is the function of the weighted average of the individual stock returns that form up the portfolio. The formula to calculate the expected return of a two stock portfolio is as follows,

Portfolio return = wA * rA  +  wB * rB

Where,

  • w is the weight of each stock
  • r is the rate of return on each stock

As the investment in total portfolio is 97500 and the investment in stock A is 84650, the investment in stock B will be,

Stock B = 97500 - 84650 = 12850

Portfolio Return = 84650 / 97500 * 0.106  +  12850 / 97500 * 0.064

Portfolio return = 0.1004646154 or 10.04646154% rounded off to 10.05%

7 0
3 years ago
A rumor is circulating that ridicules a new employee, accusing him of having typos in his latest slide presentation. You overhea
aliina [53]
The step that should taken action of this is to have your co-workers to ask whether if they have an actual evidence of this incident. They should not talk about other employees when they don't even know what the real story behind it and if ever they have anything that they are trouble to, they should seek someone who will be of assistance to them to fix the problem.
3 0
3 years ago
Other questions:
  • If walter's costs are typical in the industry, we would expect that in the long run:
    14·1 answer
  • Total Materials VarianceYoung Inc. produces plastic bottles. Production of 16-ounce bottles has a standard unit quantity of 0.45
    5·1 answer
  • Tom is taking a science test and he needs to get 80% of the 20 questions on the test right in order to pass. how many questions
    10·2 answers
  • Blue Vibrance Company sells a product used in many manufacturing processes. The sales activity involves three activity areas: Ac
    7·1 answer
  • "The last three years of severe drought conditions have been brutal to our lawn care business. We survived, but our business is
    10·1 answer
  • Which of the following statements accurately describe the practice of tax inversion?
    7·1 answer
  • ________outright lying or obfuscation, is antithetical to authentic communication and should be avoided by PR professionals, acc
    13·1 answer
  • According to the blake/mouton leadership grid, _____ leadership style occurs when leaders care about having a friendly, enjoyabl
    15·1 answer
  • The characteristic of successful supervisors that involves listening to what employees have to say is known as
    6·1 answer
  • A marketing research agency conducted a study to determine the reasons for the decreased sales of a line of fishing equipment at
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!