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kupik [55]
1 year ago
14

A U.S. firm has sold an Italian firm €1,000,000 worth of product. In one year the U.S. firm gets paid. To hedge, the U.S. firm b

ought put options on the euro with a strike price of $1.65. They paid an option premium $0.01 per euro. If at maturity, the exchange rate is $1.60,
Business
2 answers:
Paraphin [41]1 year ago
7 0

Answer:

The firm will realize $1,640,000 on the sale net of the cost of hedging.

Explanation:

Nimfa-mama [501]1 year ago
5 0

Answer:

Since the US company paid $0.01 per euro for the put option, they will receive ($1.65 - $0.01) x 1,000,000 = $1,640,000 when they execute their option. That will result in a net gain of $1,640,000 - $1,600,000 (the current exchange rate) = $40,000. Since the exchange rate was lower than the put option rate, the company was able to make a gain.

Explanation:

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Barbara Muller Services (BMS) pays its employees monthly. The payroll information listed below is for January 2018, the first mo
Semmy [17]

Answer:

$13,296

Explanation:

Federal unemployment tax rate = 0.8% of 96,000 = 768

State unemployement tax rate = 5.4% of 96,000 = 5,184

Social security tax rate+medicare tax rate = 6.2%+1.45% = 7.65%

7.65% of 96,000 = 7,344

So total tax expense = 768+5,184+7,344 = $13,296

So answer is $13,296

5 0
1 year ago
Identify the trade-restraining practice that this example demonstrates. Tubifor, Inc. purchases all available imported lumber so
fomenos

Answer:

"Pursuit of monopoly power" is the correct solution,

Explanation:

  • Through a party, the shareholders of such a monopoly have had the authority to adjust rates, eliminate rivals, thereby dominate the competition within the specific geographical region.
  • Antitrust laws in the United States discourage monopolies and whatever other practices which unduly restrict competitor's commerce. The form of trade restriction shown by this illustration is the acquisition of monopoly control.

Therefore the answer to the above was its right one.

7 0
1 year ago
An annuity with an infinite life is called​ a(n) ________. A. perpetuity B. deep discount C. primia D. option
Tasya [4]

Answer:

The correct answer is letter "A": perpetuity.

Explanation:

Annuities are regularly-provided income hired through insurance. Those payments can be provided within a short or long period of time until an undetermined date. That is the reason why annuities are also called perpetuities. Annuities are taxed at regular income tax rates.

3 0
1 year ago
Which of the following captures the specific actions that leaders take to influence others at work? A.Leadership styles and beha
Tom [10]

Answer:

A.Leadership styles and behaviours

Explanation:

-Leadership styles and behaviours refer to the approach and actions a leader take to direct, motivate and guide people.

-Team processes refer to how the team works to accomplish goals.

-Team characteristics refer to the qualities that a group of people that work together possess.

-Leader power and influence refer to the ability a leader has to convince people to do certain things and achieve a goal.

According to this, the option that captures the specific actions that leaders take to influence others at work is leadership styles and behaviours.

7 0
1 year ago
Gore Global is considering the two mutually exclusive projects below. The cash flows from the projects are summarized below.
coldgirl [10]

Answer:

D

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Flying Car

Cash flow in year 0 = -$200,000

Cash flow in year 1 = 50,000

Cash flow in year 2 = 50,000

Cash flow in year 3 =80,000

Cash flow in year 4 =100,000

IRR = 13%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

7 0
1 year ago
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