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chubhunter [2.5K]
3 years ago
14

Which of the following statements regarding early termination of a forward contract is most accurate?

Business
1 answer:
AnnyKZ [126]3 years ago
4 0

Answer: A. Early termination through an offsetting transaction with the original counterparty eliminates default risk.

Explanation:

A Forward contract is an agreement between two parties that obligates one party buying the asset that the seller will sell at a certain price and at a certain point in future.  

If the contract is terminated early but there is an offsetting transaction which mirrors the contract obligation then that means that the obligation has been settled and so the default risk which is the risk that one party was not going to fulfil their obligation will be eliminated.

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If the supply of a product increases, then we would expect equilibrium price
olga55 [171]

With everything else remaining constant, an increase in supply will result in a decrease in the equilibrium price and an increase in the amount required.

The equilibrium price will increase as the supply declines, while the quantity needed will go down. Demand and supply forces are balanced at an equilibrium price. Prices have a propensity to return to this equilibrium unless certain demand or supply characteristics alter. When demand, supply, or both move or change, the equilibrium price will change. Price decreases and quantity increases as supply grows. Price increases and quantity declines cause a drop in supply. The equilibrium price rises if the increase in supply exceeds the increase in demand. The equilibrium price falls if the increase in supply is greater than the rise in demand. Equilibrium quantity rises in both scenarios. The equilibrium price and quantity are impacted by upward movements in the supply and demand curves. The equilibrium price rises but the quantity decreases if the supply curve changes upward, indicating that supply declines but demand remains constant. For instance, pump prices are expected to increase if gasoline supply are reduced.

Learn more about equilibrium price hear :

brainly.com/question/14903710

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5 0
1 year ago
Job costing, process costing. In each of the following situations, determine whether job costing or process costing would be mor
scoray [572]

Answer:

a. A CPA firm     Job costing

b. An oil refinery     Process costing

c. A custom furniture manufacturer     Process costing

d. A tire manufacturer     Process costing

e. A textbook publisher     Process costing

f. A pharmaceutical company      Process costing

g. An advertising agency     Job costing

h. An architecture firm        Job costing

i. A flour mill        Process costing

j. A paint manufacturer     Process costing

k. A nursing home      Job costing

l. A landscaping company     Job costing

m. A cola-drink-concentrate producer      Process costing

n. A movie studio     Job costing

o. A law firm     Job costing

p. A commercial aircraft manufacturer      Process costing

q. A management consulting firm       Job costing

r. A plumbing contractor      Job costing

s. A catering service       Job costing

t. A paper mill       Process costing

u. An auto repair shop    Job costing

Explanation:

7 0
4 years ago
Assume the following facts are true for 2016: 318 million people lived in the United States. A total of 2,468,435 of these peopl
Gre4nikov [31]

Answer:

The number of people that were at risk for diabetes in 2016 is 289 million people

Explanation:

The number of persons at risk of a health outcome in a population is the difference between the total population and the number of persons that already have the health outcome in the population.

The number at risk of an outcome is calculated at the beginning of the year, before changes occur throughout the progression of the year, to accurately state the number at risk for that research year.

In our example, we will be concerned only about the data gotten at the beginning of the year, and these include;

The total population = 318,000,000 people

Number of persons with diabetes at the beginning of 2016 = 29,000,000 people.

Therefore, number of persons at risk for diabetes in 2016 = The total population - Number of persons with diabetes at the beginning of 2016

= 318,000,000 - 29,000,000 = 289,000,000 (289 million) people).

Note do not confuse this with the risk ratio for diabetes in 2016, which is the ratio of the number with diabetes and the total population.

5 0
3 years ago
Heidi talks in the video about her determination to protect the brand and ensure the safety of the animals in Camp Bow Wow’s car
Romashka [77]

Answer: High cultural values and high performance.

Explanation:

The business has been able to create a strong bond between their business performance and their cultural values, The leadership of the organization has been able to steer Camp Bow Wow to a level of high performance and culture in which every decision made is guided by clear cut values in line with the organizational goals and also the employees have a say in the organization which gives them a feel of joint ownership.

High performance coupled with high cultural value helps a business to consistently deliver at top level, get results and consistently achieve more. It is the difference between a growing and a stagnant organization or business.

5 0
4 years ago
Suppose you won $15 on a lotto ticket at the local 7-Eleven and decided to spend all the winnings on candy bars and bags of pean
Shalnov [3]

Answer:

a)

candy bars         bags of peanuts

20                       0

16                        2

12                        4

8                         6

4                         8

0                         10

b)

I attached the budget line graph

 

5 0
3 years ago
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