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
ch4aika [34]
3 years ago
11

Trading in foreign currency options would most likely be: __________

Business
1 answer:
kumpel [21]3 years ago
3 0

There are different kinds of trade. Trading in foreign currency options would most likely be an appropriate hedging tool for individual investors who want to hedge the risk on specific U.S. exchange-listed stocks.

<h3>Currency option hedges</h3>

  • Currency option hedges are known to be tools that are used in international business.

An example, when an American importer is said to agree to buy some food equipment from a Chinese manufacturer at a later future date. The transaction will be carried out in Chinese currency.

The American importer has therefore made an hedge by buing currency options on the Chinese currency.

Learn more about trade from

brainly.com/question/4957225

You might be interested in
Pine Street Inc. makes unfinished bookcases that it sells for $58.09. Production costs are $37.97 variable and $10.12 fixed. Bec
ololo11 [35]

Answer:

Pine Street should sell finished bookcases.

Explanation:

                                  Differential analysis

                                 Sell unfinished  Process further  Net income

                                                                                        Increase (decrease)

Sale price per unit        58.09                    73.08                  14.99

<u>Cost per unit</u>

Variable                         37.97                     44.61                  -6.64

Fixed                              10.12                      10.12                      0

Total                              48.09                     54.73                  8.35

Net income per unit      10                         18.35                  8.35

So, the book cases should be sold after processed further.

7 0
3 years ago
Concord Company had bonds outstanding with a maturity value of $311,000. On April 30, 2017, when these bonds had an unamortized
Dmitrij [34]

Answer:

<u>Redemption of Old Bonds</u>

4-30-17   Bonds Payable                              $311000 Dr

              Loss on Bond Redemption           $26550 Dr

                       Discount on Bonds Payable        $11000 Cr

                       Cash                                                $326550 Cr

<u>Issuance of New Bonds</u>

3-30-17   Cash                                                 $314110 Dr

                     Premium on Bonds Payable            $3110 Cr

                     Bonds Payable                                  $311000 Cr

Explanation:

<u>Redemption of Bonds Payable</u>

The maturity value for bonds payable is equal to the face value of these bonds. This means that the face value of old bonds was $311000.

The bonds were carrying a discount. Thus, the carrying value of bonds was

Carrying value = Face value - Discount

Carrying value = 311000 - 11000    =  $300000

Bonds with a carrying value of $300000 were redeemed at 105% of the face value. The cash paid for redemption is,

Cash paid = 311000 * 105%  =  326550

Thus, there was a loss on redemption of = 326550  -  300000  = $26550

<u />

<u />

<u>Issuance of Bonds Payable</u>

The bonds were issued at 101% of the face value which means they were issued at a premium.

The amount of premium on these bonds is,

Premium = Carrying value - Face value

Premium = 311000 * 101%  - 311000  

Premium = $3110

3 0
3 years ago
Universal Electronics, Inc. (UEI), which started operations one year ago, has two divisions: Consumer and Commercial. Both divis
zhannawk [14.2K]

Answer:

Consumer    EVA 7, 133.00

Commercial EVA 7,090.50

<u>Both are profitable</u>

<u />

Explanation:

The EVA (economic value added) is the result from subtracting the cost of capital of the investment to their divisional income. This will determinate if the division increase the company's capital or destroyed (as it return less than optimal/desired)

Consumer Income                     11,500

Investment: 35,500 + 4,200 = 39,700

EVA:     11,500 - 39,700 x 11% =  7,  133

Commercial Income                  11,925

Investment: 39,750 + 4,200 = 43,950

EVA: 11,925 - 43,950 x 11%   =  7090.5

Both division are profitable as they generate more income than the cost of the investment

4 0
3 years ago
In the circular flow model of the market system, households’ major role is to Multiple Choice buy both products and resources. s
STALIN [3.7K]

Answer:

Explanation:

the diagram of circular flow, shows the graphical representation of the exchange of goods, services and money between two parties as are families and businesses, where families exchanged money for goods and services and the companies through these monies that they receive to acquire factors of production to provide to the families.

5 0
3 years ago
An increase in financial leverage generally results in a higher return on equity (ROE)
ollegr [7]

Answer:

The statement is: True.

Explanation:

According to the DuPont analysis, three factors are influencing the increase of the Return On Equity (ROE): <em>the efficiency of operations, the efficiency of the company's assets, </em>and <em>the financial leverage</em>. The DuPont analysis studies those three factors and how they help the ROE to increase or decrease.

5 0
3 years ago
Other questions:
  • If company managers want to pursue cost-saving actions that can potentially result in their company achieving a sustainable cost
    12·1 answer
  • Outsourcing is:
    6·1 answer
  • For 2014, Taxpayer (TP) wants to recognize a deduction. The deduction involves a statute that has not changed since enacted in 1
    10·1 answer
  • The HIM director hired an HIM data integrity analyst. This is a new position with a newly created job description. The director
    6·1 answer
  • A fixed asset with a cost of $30,000 and accumulated depreciation of $28,500 is sold for $3,500. What is the amount of the gain
    7·1 answer
  • Green Valley Steel had sales of $1,000,000 and collections of $760,000, leaving a balance of $240,000 in accounts receivable as
    11·2 answers
  • On April 1, 2019, Sheffield Corp. purchased new machinery for $459000. The machinery has an estimated useful life of five years,
    5·1 answer
  • Blue Spruce Company is considering two new projects, each requiring an equipment investment of $101,800. Each project will last
    8·2 answers
  • Compute the payback period for each of these two separate investments: A new operating system for an existing machine is expecte
    13·1 answer
  • Taxes that include Social Security and Medicare withholdings.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!