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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

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Assuming that data mining techniques are to be used in the following cases, identify whether the task required is supervised or
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Answer:

Supervised and Unsupervised Learning:

a. Unsupervised learning

b. Supervised learning

3. Supervised learning

4. Unsupervised learning

Explanation:

The key difference between supervised machine learning and unsupervised machine learning is that with supervised machine learning there is a training dataset (labeled data) on which the algorithm is trained to predict patterns.  With unsupervised machine learning on the other hand, there is no training data.  So, the algorithm discovers patterns on itself without reference to another labeled data or training dataset.

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Sue Gastineau borrowed $17,000 from Regions Bank at a rate of 5.5% to open her lingerie shop. The date of the loan was March 5.
dezoksy [38]

Sue will pay back $507.20 in interest expense.

Explanation:

The formula for calculating simple interest is:

SI = P x r x t ÷ 100

  • P = Principal
  • r = Rate of Interest
  • t = Term of the loan/deposit in years

In the given problem,

  • Sue Gastineau borrowed $17,000 from Regions Bank so, P = $17000
  • Sue Gastineau borrowed $17,000 from Regions Bank at a rate of 5.5%, so r = 5.5 %
  • Number of days of the loan = March 5 to September 19
  • Sue borrowed $17,000 from Regions Bank for the period of = 198 days, So t = 198 / 365

Simple Interest = (17000 * (5.5/100) * (198/365))

Simple Interest = (17000 * (0.055) * (0.5424657534246575‬))

Simple Interest = (17000 * (0.055) * (0.5424657534246575‬))

Simple Interest = $507.20

5 0
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If the break-even exchange rate for the Currency Options Contract is 1.46 $/BP, and you believe the exchange rate at the time of
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<em>Yes, I will sign the contract. </em>

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The break-even exchange rate for the currency options contract is $1.46/BP and the exchange rate at the time of the payment will be $1.43/BP which means a reduction of $0.03 as future value. Since the contract was not signed with the inflationary rate, the receiver is at advantage while the lender is at a loss.

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Read 2 more answers
Thornton Camps, Inc. leases the land on which it builds camp sites. Thornton is considering opening a new site on land that requ
Alona [7]

Answer:

$20.

Explanation:

So, we have the following important data or parameters the are going to help us or assist us in solving this particular Question or problem.

(1). Total number of customers served campers = 6600.

(2). Rental payment per month = $3,300.

(3). Total number of months = 12 months( that is January to December).

(4). "The variable cost of providing service is expected to be $5 per camper"

So, let us delve right into the solution of the question.

Step one: determine the fixed cost per unit. The fixed cost per unit can be determined by following the formula below;

Fixed cost per unit = (rental payment pee month × number of months) ÷ total number of campers.

Thus, the fixed cost per unit = $3,300 × 12) ÷ 6,600.

The fixed cost per unit = 6.

STEP TWO: The next thing to do now is to determine the price it should charge for a camp site in February and August.

Kindly note that this the price that it should charge for a camp site in February and August are going to be the same.

Therefore, the price it should charge for a camp site in February and August = $6 + $5 + $9 = $20.

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