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kupik [55]
2 years 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]2 years ago
7 0

Answer:

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

Explanation:

Nimfa-mama [501]2 years 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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A business consultant earns a flat fee for his work as well as an hourly fee. He charges his clients at a rate of $75 per hour.
Delicious77 [7]
Well...if he earns $75 an hour....and he worked for 20 hours...that's
75 * 20 which = 1500
Now it says he also earns a flat fee....since the question states he billed the client 1800...and he only earned 1500 of it...that must mean that his flat fee would be
1800 - 1500 = 300
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1 year ago
On analyzing her company’s goods transport route, Simone found that they could reduce transport costs by a quarter if they merge
EastWind [94]

Your answer is logistician. I just took the test for this and got them all right, so I know this is correct. Hope it helps (:

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1 year ago
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Journey's the shoe store has a cost of goods sold of $22.00 on classic Converse Chuck Taylor sneakers. The corporate office mand
velikii [3]

Answer:

Explanation:

Firs, find the markup amount in dollars;

Markup amount = Cost * markup rate

Cost = $22

markup rate = 30% or 0.30 as a decimal

Markup amount = 0.30*22 = $6.6

Next, find the retail price using the markup amount calculated above;

Retail Price = Markup amount + cost

Retail price = $6.6 +$22

= $28.6

Therefore, the sneakers retail price is $28.6

4 0
1 year ago
U.S.-based companies should turn to the _____ for the most comprehensive source of export information.
Juliette [100K]

Answer:

Department of commerce

Explanation:

U.S.-based companies should turn to the department of commerce for the most comprehensive source of export information.

The department of commerce is a section in the United States government. It creates jobs through good and favorable international trade terms, sustainable development and through access to high technology.

It provides companies with trade informations of which exports is one.

6 0
2 years ago
The order of presentation of activities on the statement of cash flows is
Rufina [12.5K]

Answer:

Operating activities

Investing activities

Financing activities

Explanation:

In a cash flow statement, the activities of the organization are usually recognized in 3 parts namely; Operating activities, investing activities and financing activities.

The operating activities include elements such as net profit, non cash items, change in current assets and liabilities.

The investing activities include cash flows from the disposal and purchase of assets etc

The financing activities includes cash flows from the disposal and sale of shares etc.

The net cash flows from these activities is the netted off the cash balance at the beginning of the period to get the cash balance at the end of the period.

Hence the order of presentation of activities on the statement of cash flows is

Operating activities

Investing activities

Financing activities

6 0
2 years ago
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