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3 years ago

Trading in foreign currency options would most likely be: __________

1 answer:

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

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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

Cost per unit

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:

Redemption of Old Bonds

4-30-17 Bonds Payable $311000 Dr

Loss on Bond Redemption $26550 Dr

Discount on Bonds Payable $11000 Cr

Cash $326550 Cr

Issuance of New Bonds

3-30-17 Cash $314110 Dr

Premium on Bonds Payable $3110 Cr

Bonds Payable $311000 Cr

Explanation:

Redemption of Bonds Payable

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

Issuance of Bonds Payable

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

Both are profitable

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): the efficiency of operations, the efficiency of the company's assets, and the financial leverage. The DuPont analysis studies those three factors and how they help the ROE to increase or decrease.

5 0

3 years ago