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
Montano1993 [528]
2 years ago
13

Jasper Pernik is a currency speculator who enjoys "betting" on changes in the foreign currency exchange market. Currently the sp

ot price for the Japanese yen is ¥129.87/$ and the 6- month forward rate is ¥128.53/$. Jasper thinks the yen will move to ¥128.00/$ in the next six months. If Jasper's expectations are correct, then he could profit in the forward market by ________ and then ________.
A) buying yen for ¥128.00/$; selling yen at ¥128.53/$
B) buying yen for ¥128.53/$; selling yen at ¥128.00/$
C) There is not enough information to answer this question.
D) He could not profit in the forward market.
Business
1 answer:
MariettaO [177]2 years ago
6 0

Answer:

Option (b) is correct.

Explanation:

Given that:

Spot price for the Japanese yen is ¥129.87/$ i.e 1 yen = 1/129.87 = $0.007700

6- month forward rate is ¥128.53 $i.e

1 yen = $0.00780

Yen will move to ¥128.00/$ in the next six months i.e.

1 yen = 1/128

         = $0.007813

Here there is opportunity of profit when he purchase yen at forward rate of:

$0.007800 i.e at ¥128.53/$ and sells at 0.007813 i.e at ¥128.00/$ making a profit of $0.000013 per yen.

Therefore, the correct answer is option B i.e buying yen for ¥128.53/$; selling yen at ¥128.00/$.

You might be interested in
In October, Pine Company reports 18,600 actual direct labor hours, and it incurs $126,540 of manufacturing overhead costs. Stand
VladimirAG [237]

Answer:

The total overhead variance in hours taken is 3,600 hours

The total overhead cost variance is $1,110

Explanation:

The variance is about the different between budget/ standard and actual figures.

Standard hours allowed for the work done is 22,200 hours; and the predetermined overhead rate is $5.75 per direct labor hour. So total cost budgeted for work done is $127,650 = $5.57 x 22,200 hours

The total overhead variance in hours taken  = standard hours of 22,200 - actual direct labor hours of 18,600 = 3,600 hours

The total overhead cost variance  = standard cost - actual cost = $127,650  - $126,540 = $1,110

7 0
2 years ago
Suppose that Sidney runs a micro financing agency that lends money to people to start small businesses in poor countries. Sidney
NemiM [27]

Answer:

1) $9615.38

2)$9245.56

3) b is the correct option.

Explanation:

See the attached pictures for detailed answer.

5 0
2 years ago
Which of the following best completes the following, ‘Brands can stimulate ______ media, brand-related word-of-mouth communicati
Alik [6]

Answer:Earned, owned

Explanation: A brand is an identifying symbol, mark, logo, name, word, and/or sentence that companies use to distinguish their product from others.

In today's marketplace teeming with thousands of products and services, all of which are being rapidly commoditized, a brand stands out from the clutter and attracts attention.

A brand name can create and stand for loyalty, trust, faith, premium ness or mass-market appeal, depending on how the brand is marketed, advertised and promoted.

A brand differentiates a product from similar other products and enables it to charge a higher premium, in return for a clear identity and greater faith in its function.

5 0
2 years ago
The following information relates to Mapfes Manufacturing Corporation for next quarter: January February March Expected sales (i
prohojiy [21]

Answer:

Number of units which company plan to produce in February is 352000

Explanation:

We have given expected sales in January, February and march is 440000, 390000 and 380000 units respectively  

And desired needing finished goods in inventory  in January, February and march is 39000, 38000 and 40000 units respectively  

We have to find the how many units company plans to producing for month February

Number of units which company plan to produce in February = 390000 - 38000 = 352000  

6 0
2 years ago
If gasoline taxes were significantly increased in the united states, then select one:
zmey [24]
<span>If gasoline taxes were significantly increased in the united states, then all of the above. I</span><span>t is likely that roads would become safer and the environment would become cleaner, other taxes, such as income taxes, could be lowered and some of the government regulations that require automakers to produce more fuel-efficient cars would become unnecessary.

If the government were to impose higher taxes on gasoline all of these outcomes could happen because they all relate to the use of gasoline and how it hurt our environment. If less people were using the gas, more eco friendly vehicle options would likely be on the market. </span>
4 0
2 years ago
Other questions:
  • Zacariah's Nursery has 6,000 shares of stock outstanding at a market price of $20 a share. The earnings per share are $1.54. The
    6·1 answer
  • Yelk Garage uses time and materials pricing. It is setting prices for next year using the following information: Labor rate, inc
    11·1 answer
  • Which of the following are qualities of successful business writing? Check all that apply.
    14·1 answer
  • Finley Co. is looking for a new office location and sees a building with a fair value of $400,000. Finley also notices that much
    9·1 answer
  • You are the manager of a firm that produces products X and Y at zero cost. You know that different types of consumers value your
    5·1 answer
  • Two consumers, A and B, consume books and wine. Consumer A's initial endowment is (60, is, has has 60 books and 10 bottles of wi
    6·1 answer
  • Ajax, Inc., issued callable bonds with a par value of $1,000,000 that require the payment of a call premium of $10,000. The bond
    7·1 answer
  • "What is the ultimate reason for trading equity for financial support? a. it is usually a deal/no deal option b. preparing for t
    6·1 answer
  • On January 1, 2020, Cracker Co. purchased 40% of Dallas Corp.'s common stock at book value of net assets. The balance in Cracker
    15·1 answer
  • The question, "What are the distinguishing characteristics of effective leaders?" sparked which approach to the study of leaders
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!