answer.
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
alina1380 [7]
2 years ago
7

You plan to visit Geneva, Switzerland in three months to attend an international business conference. You expect to incur the to

tal cost of SF 10,000 for lodging, meals and transportation during your stay. As of today, the spot exchange rate is $0.60/SF and the three-month forward rate is $0.63/SF. You can buy the three-month call option on SF with the exercise rate of $0.64/SF for the premium of $0.05 per SF. Assume that your expected future spot exchange rate is the same as the forward rate. The three-month interest rate is 6 percent per annum in the United States and 4 percent per annum in Switzerland. (a) Calculate your expected dollar cost of buying SF10,000 (after including option premium) if you choose to hedge via call option on SF
Business
1 answer:
aliina [53]2 years ago
5 0

Answer:

Therefore , the total future costs of buying sf 10000  = $6807.5

Explanation:

Premium = 0.05 (10000) = $500

Finding the value of $500 in 3 months = 500(1.015)= 507.5

The future expected spot rate is $0.63/sf, because this is less than exercise price, I will not exercise options. Instead I will expect to buy swiss franc at $0.63/sf. Since I will purchase sf 10000.

I will spend (0.63* 10000) = $6300.

Therefore , the total future costs of buying sf 10000 ,

$6300+$507.5 = 6807.5

You might be interested in
Suppose there is one ticket left for tonight’s performance of Hamilton on Broadway. The ticket costs $700. Sean is a community c
castortr0y [4]

Answer: B. Anca

Explanation:

From the information provided in the question, we should note that Anca purchasing the tickets will lead to a more economically efficient outcome.

From the information given, we can see that Anca is willing to pay $1250 while Sean wants to pay $705. Therefrom Anca purchasing the tickets leads to a better efficiency.

We can also infer that if Anca pays $1,250, a consumer surplus of $550 is gotten while Sean would get a consumer surplus of only $5.

Therefore, the correct option is B.

3 0
1 year ago
Jones, a consulting manager of Miller & Co., is considering membership on an audit client’s board of directors. Jones does n
lord [1]
<span>The AICPA rules would enforce that he is not allowed to join the board since he would be considered a firm professional. This would prevent a conflict of interest where he would serve as a director of a client. The AICPA is the American Institute of Certified Public Accountants.</span>
5 0
2 years ago
Read 2 more answers
You have been approached by the editor of Gentlemen’s Magazine to carry out a research study. The magazine has been unsuccessful
horsena [70]

Answer:

The management research question capable of developing a scientific proposal will be questions that will address the concerns of the management.

1. How Gentlemen’s Magazine can be marketed to shoe manufacturers

2. What is the profitability of shoe manufacturing?

3. What are the main sources of sales for shoe manufacturer?

4. What percentage of clothing stores also deal in the sales of shoes?\

5. What is the percentage demand of male shoes?

6. What is the profitability of shoe sales in general?

7. Will men shoes be a profitable venture for Gentlemen’s magazine? and how profitable?

8. What is the frequency of purchase of men's shoes in a year?

9. How many pairs of shoes do men purchase at one time?

10. What types of men shoes are most likely to be purchase by men?

11. What is the preferred colors of shoes purchased by men?

Explanation:

The management research question capable of developing a scientific proposal will be questions that will address the concerns of the management.

1. How Gentlemen’s Magazine can be marketed to shoe manufacturers

2. What is the profitability of shoe manufacturing?

3. What are the main sources of sales for shoe manufacturer?

4. What percentage of clothing stores also deal in the sales of shoes?\

5. What is the percentage demand of male shoes?

6. What is the profitability of shoe sales in general?

7. Will men shoes be a profitable venture for Gentlemen’s magazine? and how profitable?

8. What is the frequency of purchase of men's shoes in a year?

9. How many pairs of shoes do men purchase at one time?

10. What types of men shoes are most likely to be purchase by men?

11. What is the preferred colors of shoes purchased by men?

8 0
1 year ago
Commercial advertising campaigns often seek to spin information on products. For example, a car manufacturer might say a particu
Oksi-84 [34.3K]

Answer:

D)ethical domain

Explanation:

Ethical domain can be regarded as behavioural domains that address right or wrong conducts. Ethical domain extends on domains such as reason, the consequences as well as the action taken.

Therefore in the case of this Commercial advertising campaigns as described in the question, The decision to deliberately obscure potentially important information is best described as being in ethical domain

7 0
1 year ago
One year ago, Debra purchased 5,400 shares of KNF stock for $218,056. Today, she sold those shares for $19.49 a share. What is t
kramer

Answer:

Capital gain yield will be -51.73%

So option (d) will be the correct answer

Explanation:

We have given that Debra purchased 4500 shares of KNF stock for $218056

So price of one share =\frac{218056}{5400}=$48.380

So the beginning price = $40.380

She sold the share at price of 19.49 per share

So ending price = $19.49

We have to find the capital gain yield

We know that capital gain yield is given by

Capital gain yield =\frac{end\ price-beginning\ price}{begninning \ price}=\frac{19.49-40.380}{40.390}=-51.73 %

So option (d) will be correct option  

7 0
2 years ago
Other questions:
  • Privacy settings allow account owners to decide who can
    10·1 answer
  • The problem with relying on a point estimate of a population parameter is that:
    7·1 answer
  • Nancy's union has negotiated a three-year wage contract that provides for a 2.4% increase indexed to inflation. The rates of inf
    10·1 answer
  • Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine's useful life is
    7·1 answer
  • In its proposed 2022 income statement, Hrabik Corporation reports income before income taxes $500,000, income taxes $100,000 (no
    8·1 answer
  • Biologically, emerging adulthood has traditionally been the optimal time for hard physical work and _____.
    6·1 answer
  • Suppose you have $1,000,000 today and starting a year from now you intend to spend this money over the next 30 years. Assume the
    7·1 answer
  • Which of the following Lean principles reflects the ability of a customer to move through a process? a) Value b) Flow c) Pull d)
    10·1 answer
  • After reading the article, select the statements that are correct. Choose one or more: A. The cost-of-living adjustment for 2020
    7·1 answer
  • Onyemah Corporation uses the FIFO method in its process costing system. Operating data for the Brazing Department for the month
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!