Carla Vista Industries has purchased equipment from a Brazilian firm for a total cost of 295,000 Brazilian reals. The firm has to pay in 30 days. Citibank has given the firm a 30-day forward quote of $0.3102/real. Assume that on the day the payment is due, the spot rate is $0.3418/real. How much would Carla Vista save by hedging with a forward contract?

Answers

Answer 1

Carla Vista Industries would not save anything by hedging with a forward contract.

Given:

Cost of Equipment = 295,000

Brazilian reals Forward Quote of Citibank = $0.3102/real

Spot Rate at the time of payment = $0.3418/real

Formula Used: Amount Saved = Forward Rate - Spot RateCalculation:

Amount of cost in USD, without hedging = 295,000 Brazilian reals * $0.3102/real = $91,329

Without Hedging, the company will pay $91,329 at the time of payment

Amount of cost in USD, with hedging = 295,000

Brazilian reals * $0.3102/real = $91,329

Amount Saved = Forward Rate - Spot Rate

= $0.3102/real - $0.3418/real

= -$0.0316/real

The forward rate is less than the spot rate, which means the company is not saving any amount, rather it has to bear the loss of $0.0316/real for the transaction if hedged.

Therefore, Carla Vista Industries would not save anything by hedging with a forward contract.

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Related Questions

When demand exceeds capacity, all of the following are reasonable options for the firm excepta. operating overtime hours to meet the demand.b. starting a second or third shift.c. subcontracting part of the work to other producers.d. turning away some long-time customers.e. expanding the capacity of the current facility.

Answers

All of the following are viable possibilities for the firm when demand exceeds capacity, with the exception turning away some long-time customers.

Demand in economics refers to the quantity of a good that consumers are willing and able to buy at various prices at any particular time. The link between price and quantity demanded is known as the demand curve. Demand is an economics principle that describes the consumer's decision to purchase the good or service. The rate that consumers are willing to pay for the good or service is used to calculate demand.

Demand is the preference of the customer to purchase a particular privilege or service. The need for a specific good in the market is known as market demand. The overall demand for goods and services in the economy is known as aggregate demand. The cost of the service is determined by call for and deliver fit.

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I am conducting a survey as a project. I need ur help Which one you like 1. Ferrari 2. Lamborghini 3. Mclaren and why?? ( If you couldnt give your choice as an answer, then write it in the comment box below the question )

Pls help

Answers

Answer:

Explanation:

Compared to the McLaren, the Lamborghini has less power, a heavier engine, and less active aerodynamic designs. This allows the Huracán Performante to be an excellent supercar with extreme sounds, feels, and the excitement of a Lamborghini, but in performance the McLaren is superior.

Please help............

Please help............

Answers

it would be 900 because 8% of 900 is 72

If a tour costs the tour operator $1,500 per person and the operator has a markup of 15 percent, how much would a pair of customers pay for tours?


$3,450

$300

$3,300

$3,000

Answers

It would the 3,450 cuz if it is 15 percent mark up per person then it would be 1725 but the question is how much would a pair of customers so multiplied by two because it says a pair

What is more important a business's responsibility to society, its employees, or to its stockholders?

Answers

The business's responsibility to its employees is the most important responsibility of a business to the society.

What entails the business responsibility?

A social responsibility programs does boost an employee morale in the workplace and lead to greater productivity which has an impact on how profitable the company can be.

Most time, the businesses that implement social responsibility initiatives can increase customer retention and loyalty.

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Which of the following is an example of intergenerational miscommunication?
O
Your teacher tells the class the homework at the end of the class period every day. You cannot write it down as fast as she mentions it.
Sometimes, you forget to check with a classmate before the end of school, so you can't complete your homework. It would be a lot easier
for you if the teacher wrote down the assignments.
You have new next-door neighbors, recently arrived from another country. They celebrate holidays that you have never heard of, and they
don't celebrate the holidays you do. The kids in the family have invited you over to dinner, but the food looks weird, and you're hesitant
Your grandmother is hurt because you did not send her a birthday card. You reply that you did—you texted her an animated birthday
message. It turns out she did not know how to receive it, but when you show her, she doesn't seem to feel much better at all.
Your younger brother has a little-kid crush on one of your friends and follows you two around everywhere. It's annoying, and he doesn't
stop unless you yell at him. Of course, then he starts crying, and your parents get mad at you
O

Answers

Answer:

Your grandmother is hurt because you did not send her a birthday card. You reply that you did—you texted her an animated birthday message. It turns out she did not know how to receive it, but when you show her, she doesn't seem to feel much better at all.

Explanation:

Your grandmother is older than you and doesn't know how to work a phone as well as you do because of the generational difference between the two of you.

Answer:

1. Your grandmother is hurt because you did not send her a birthday card...

2. Your younger brother has a little-kid crush on one of your friends and follows you two around everywhere...

3. Your teacher tells the class the homework at the end of the class period every day...

4. You have new next-door neighbors, recently arrived from another country...

Explanation:

Edge 2021-2022 :)

1. Describe the general effect of education on a person’s earnings. (50 word minimum) *Take into consideration our notes*
2. Do you think this means everyone should make the decision to enroll in college? Tell me the why and why not? (70 word minimum) *Take into consideration our notes and the video on ‘The Economics of Education.’*
3. Describe your plan for work and/or college after high school. Then, describe one strategy you can use to allocate your time and money now that will help you stick to that plan in the future. (125 word minimum)
4. Lastly, what is the opportunity cost of the decision you explained in Question 3? (60 word minimum

Answers

Education and income have a high correlation. A common phrase used to describe education is "an investment in human capital." Similar to how individuals invest in financial assets to produce money, they also invest in human capital. In general, those who have more education make more money.

What are the benefits of education?

With its positive effects on health and livelihoods, social stability, and long-term economic growth, education is a potent force for change. Each of the 17 sustainable development goals must be achieved in order for it to succeed.

Among other things, income consists of wages, rent, interest, dividends, and subsidies. Due to their higher investment and saving rates compared to other classes, the rich or upper class tends to have a bigger percentage of unearned income in their overall income. The quality of a person's education and talents are immediately reflected in their employment.

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What does the term 'user
experience' refer to regarding a
website?
A. the overall ease of navigation and ability to
purchase on a company's website
B. the general experience a customer has when
using a product of a business
C. the customer experience when dealing with
customer service representatives

Answers

Answer:b

Explanation:

Choose the option that best matches the description given.

Providing assistance to people in need through programs is known as ___
services. a mental health b rehab c human

Answers

Necesito saber de que clase es para poder responder

Answer:

Human services

Explanation:

discuss why the national recovery audit program was established

Answers

The national recovery audit program (RAC) was established to combat improper payments in the healthcare industry.

These improper payments include overpayments, underpayments, and fraudulent billing practices. The RAC program was designed to identify and recover improper payments made to healthcare providers and suppliers by the Medicare and Medicaid programs.

The RAC program was established as a result of the Medicare Modernization Act of 2003, which required the Centers for Medicare and Medicaid Services (CMS) to implement a program to identify and recover improper payments.

The RAC program is an important tool in the fight against waste, fraud, and abuse in the healthcare industry, and it helps ensure that taxpayer dollars are being used appropriately.

The program has been successful in identifying billions of dollars in improper payments and has helped to improve the integrity of the Medicare and Medicaid programs.

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Uncle Qi Wang runs a coffee stall. His daily fixed costs are RM40. His variable costs are RM4 per cup of coffee. Uncle Qi Wang sells an average of 80 cups of coffee per day.

What price would Uncle Qi Wang have to charge per cup of coffee in order to generate a profit of RM600 per day

Answers

Uncle Qi Wang needs to charge RM8 per cup of coffee in order to generate a profit of RM600 per day. This is calculated by adding the variable cost of RM4 per cup to the fixed cost of RM40 and adding the desired profit of RM600, then dividing by the average number of cups sold per day.

To generate a profit of RM600 per day, Uncle Qi Wang's total revenue should be RM800 (fixed costs + variable costs + profit). His variable costs are RM4 per cup, and he sells 80 cups of coffee per day, so his daily variable costs are RM320.

Therefore, his daily revenue should be RM1,160. To find the price per cup, divide the total revenue by the number of cups sold: RM1,160 ÷ 80 cups = RM14.50 per cup. Therefore, Uncle Qi Wang should charge RM14.50 per cup of coffee to generate a profit of RM600 per day.

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How are credit card companies training employees differently in order to convince debtors to pay their balances in this economy?

Answers

Answer:

train their employees on giving the debtors a hard time

Explanation:

The credit card companies are beginning to train their employees on giving the debtors a hard time and to constantly contact/harass them. By doing so they believe this will persuade the debtors into paying off their balances as the debtors will feel pressured into it for fear of the consequences that may arise from being late or not paying off the debt at all.

Answer: By educating them of the consequences of a married debt

Explanation:

Companies are training their employees to be able to convince debtors by telling debtors the grievance take of not paying or balancing their debt, they also teach them that an incurred debt would hinder a future loan collection from a bank or financial organization as the firm would see you incapable of clearing your existing loans, also they teach them to be persistent in their follow up system.

Rucker Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $15. Rucker projects sales for April will be 4,000 packages, with sales increasing by 100 packages per month for May, June, and July. On April 1, Rucker has 175 packages on hand but desires to maintain an ending inventory of 10% of the next month's sales. Prepare a sales budget and a production budget for Rucker for April, May, and June April, May, and June April Total Budgeted packages to be sold 4,000 4,100 Sales price per package 51.500 184.500 Total sales May 12300 Now prepare a production budget for April, May, and June. Rucker Company Production Budget April, May, and June April May June Total Plus: Total packages needed Budgeted packages to be produced Choose from any list or enter any number in the input fields and then click Check Answer All parts showing Check Answer Clear All

Answers

The sales budget for Rucker Company for April, May, and June shows projected sales of 4,000, 4,100, and 4,200 packages respectively. The production budget indicates that Rucker needs to produce 4,350, 4,450, and 4,550 packages for April, May, and June respectively.

The sales budget is prepared based on the projected sales for each month. In April, Rucker expects to sell 4,000 packages. Since sales are projected to increase by 100 packages per month, the sales budget for May and June is 4,100 and 4,200 packages respectively. The sales price per package remains constant at $15.

To determine the production budget, Rucker considers the desired ending inventory for each month. The desired ending inventory is calculated as 10% of the next month's sales. In April, Rucker desires to have an ending inventory of 10% of May's sales, which is 10% of 4,100 packages, equal to 410 packages.

Therefore, the total packages needed for April are 4,000 (sales projection) plus 410 (desired ending inventory), resulting in a total of 4,410 packages. Similarly, the total packages needed for May and June are calculated using the same formula.

Therefore, the production budget for Rucker Company indicates that they need to produce 4,350, 4,450, and 4,550 packages for April, May, and June respectively to meet the projected sales and maintain the desired ending inventory.

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When creating a résumé, other experiences should be included only if they are relevant to the job objective.truefalse

Answers

When creating a résumé, other experiences should be included only if they are relevant to the job objective. true

Why is it crucial to just include information that is relevant on your resume?

Recruiters want to be certain that you are serious about the position and are not simply flooding the internet with applications for every open position. This implies that if you have a lot of expertise in other, unrelated subjects, you might want to opt to concentrate exclusively on those that are specifically relevant to the career or field you seek.

Employers may learn more about you, see your qualifications, and request an interview by reviewing your resume.

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crane company purchased machinery on january 1, 2020, for $80,800. the machinery is estimated to have a salvage value of $8,080 after a useful life of 8 years.

Answers

By the end of the 8-year period, the machinery's net book value (original cost minus accumulated depreciation) would be equal to its salvage value of $8,080.

Crane Company purchased machinery for $80,800 on January 1, 2020. The estimated useful life of the machinery is 8 years, and the salvage value is expected to be $8,080 at the end of the 8-year period. To calculate the annual depreciation expense, we need to subtract the salvage value from the initial cost and divide by the useful life. Therefore, the annual depreciation expense for the machinery would be $9,650 (($80,800 - $8,080) / 8). This means that each year for 8 years, Crane Company can expense $9,650 of the machinery's value on its income statement.

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The crane company purchased machinery for $80,800 on January 1, 2020, with an estimated salvage value of $8,080 after 8 years of useful life.

The crane company's machinery has an estimated useful life of 8 years and a salvage value of $8,080. This means that after 8 years of usage, the machinery will be worth $8,080 as its scrap or salvage value. The cost of the machinery was $80,800, which is the initial investment that the company made.

To calculate the annual depreciation expense, we need to subtract the salvage value from the cost of the machinery and divide by the useful life of the machinery. Therefore, the annual depreciation expense would be ($80,800 - $8,080) / 8 = $9,900 per year. This means that each year, the crane company will record a depreciation expense of $9,900 for the machinery.

Depreciation is important because it represents the wear and tear that the machinery goes through over its useful life. By recording depreciation expense, the crane company can spread the cost of the machinery over its useful life and avoid recording a large expense in the year of purchase.

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Question 10 (5 points)

Two prescreening tools for job candidates are the resume and the


employment essay.

advertisement.

application.

letter of recommendation.

Answers

The correct answer is C. Application

Explanation:

When employers pre-screen job candidates they verify basic information about candidates such as background, education, skills, experience, etc. to determine if a candidate is suitable for a job and he/she should be interviewed or continue in the process of selection for the job.

In this context, the two main tools used by employers are the resume and the job application. These two documents provide information about the candidate's education, experience, skill, and similar but in the case of the application the information es concise and very specific, while resumes are more detailed and the candidate can include as much information as she/he wants. Thus, the two prescreening tools for job candidates are the resume and the application.

Answer: Application

Explanation: I just took the test

Hope this helps.

Banks do not hold a lot of their assets in the form of cash mainly because of:
a. regulation.
b. the fear of being robbed.
c. the opportunity cost of holding cash, cash does not earn interest.
d. it can encourage employee theft.

Answers

Banks do not hold a lot of their assets in the form of cash mainly because of  the opportunity cost of holding cash, cash does not earn interest.  The correct option is C.

Opportunity costs are the possible advantages that a person, investor, or company forgoes while deciding between two options. It is necessary to weigh the advantages and disadvantages of each choice offered in order to correctly assess opportunity costs.

The interest that could have been made if the cash had been used to buy bonds instead is the opportunity cost of keeping any money balance.

Therefore, due to the  opportunity cost of holding cash and cash does not earn interest banks does nor prefer to hold a lot of their assets in the form of cash .

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a function that describes the relationship between output and various prices of that output, prices of inputs, and values of other variables is called multiple choice question. the supply schedule. the demand function. the demand curve. the supply function. need help? review these concept resources.

Answers

A function that describes the relationship between output and various prices of that output is the supply function

A supply function is a numerical representation of the relationship between the quantity expected, or demand, for a good or service, its price, and other relevant elements, such as the costs of related goods and inputs. Individual dependent variables and independent variables abound in a supply function. By looking at the relationship between the independent variable and the supply, a supply equation can be planned.

It can also be determined by determining whether the relationship is one that is positive or negative. For instance, the market cost or supply and price are typically not correlated. Consequently, the supply function is a function that explains the link between output and various output prices, input prices, and values of other variables.

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Suppose that you wanted to purchase insurance that is sold by a private insurance company that will help bridge the gap in your Medicare coverage. You would purchase what type of​ insurance?

Answers


Supplemental insurance

Medigap insurance is purchased from private insurance companies to supplement and fill the gaps in coverage not covered by Medicare. It helps cover expenses like deductibles, copayments, and coinsurance.

If you wanted to purchase insurance from a private insurance company to bridge the gap in your Medicare coverage, you would purchase what is known as "Medigap" insurance. Medigap policies are sold by private insurance companies and are designed to supplement and fill the gaps in coverage that are not covered by Original Medicare (Part A and Part B). These policies can help cover expenses such as deductibles, copayments, and coinsurance that Medicare does not fully cover. Medigap insurance is regulated by both federal and state laws to ensure that the policies offer standardized coverage options. It is important to note that Medigap insurance can only be purchased if you are enrolled in Original Medicare and not Medicare Advantage (Part C) plans.

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Given this option chain, if you wanted to sell a covered call with a delta near .40, which strike would you choose

Answers

To determine the strike price for selling a covered call with a delta near 0.40, we need to examine the option chain. The delta represents the sensitivity of an option's price to changes in the underlying stock price. A delta of 0.40 indicates that the option's price is expected to move approximately 40% for every 1% change in the stock price.

By reviewing the option chain, we would look for a call option with a delta close to 0.40. The delta values are typically listed in the option chain alongside the strike prices. We would search for a call option with a delta closest to 0.40.

It's important to note that the option chain may have multiple strike prices available, and the specific choice depends on individual preferences and market conditions. Traders may consider factors such as desired risk-reward profile, time to expiration, and market sentiment before selecting the strike price.

Therefore, to sell a covered call with a delta near 0.40, you would choose the strike price in the option chain that has the closest delta value to 0.40.

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Lease or buy wolfson corporation has decided to purchase a new machine that costs $2.4 million. the machine will be depreciated on a straight-line basis and will be worthless after four years. the corporate tax rate is 24 percent. the sur bank has offered wolfson a 4-year loan for $2.4 million. the repayment schedule is four yearly principal repayments of $600,000 and an interest charge o

Answers

(a). Net advantage of of Leasing (NAL) = -$49,356.13.

(b). Lease Payment = $692,119.45.

The conditions under which one party agrees to rent an asset—in this example, property—owned by another party are outlined in a lease. It ensures that the tenant, also known as the lessee, will have access to the property and, in return, will make monthly payments to the lessor (the landlord or owner of the property). If either party violates the contract's conditions, there will be repercussions for both the lessee and the lessor. A type of incorporeal right is a lease. The details of rental agreements for real estate, as well as for real and personal property, are outlined in leases, which are legally enforceable contracts. These contracts are binding by both parties and contain obligations for each party to carry out and uphold the agreement.

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The normal balance side of any revenue account is the

Answers

Answer:

The answer is the debit side

President george washington instituted a tax on what alcohol product?.

Answers

Answer:

New England run and frontier whiskey

Which of the following is considered a private university?
University of North Carolina
University of Notre Dame
University of Texas
University of Florida

Answers

Among the listed Universities the private university is

B. University of Notre Dame

What is a private university?

Institutions of higher learning, private universities and colleges are not run, owned, or institutionally sponsored by governments.

As the first public institution in the country, UNC-Chapel Hill is the place where generations of Tar Heels may connect through centuries-old customs and experiences.

On a suburban campus in Notre Dame, Indiana, the University of Notre Dame is a medium-sized private university. There are 8,874 undergraduate students enrolled in total, and the applications process is quite competitive with a 19% acceptance rate.

We can therefore say that the private university is the University of Notre Dame.

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give three reasons why the maturity of a bond is important.

Answers

Maturity is a crucial factor in assessing the risk involved in buying a bond, determining the bond's price, and measuring the bond's duration.

The maturity of a bond is important for several reasons, and below are the top three reasons.

1. Maturity of a bond determines the length of time the bond will be outstanding, and it is an important factor in assessing the risk involved in buying a bond.

2. Maturity is a significant factor in determining the bond's price, and it is directly proportional to the bond's price. If the bond has a longer maturity period, it will be priced lower than the bond with a shorter maturity period.

3. The maturity of a bond determines the bond's duration, which is a measure of how long it takes the bond's cash flows to be received. The duration of a bond is important because it helps in assessing the bond's risk in terms of interest rate fluctuations.

In conclusion, maturity is a crucial factor in assessing the risk involved in buying a bond, determining the bond's price, and measuring the bond's duration.

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True/False
1. A thank you note sent after a job interview will serve as a reminder to those people you met.
2. When giving the time of your emploment on your resume, be sure to specify only the year of starting and ending of each job.
3. If an interviewer asks you what your weakness are, you should think for a moment before answering.
4. To prevent discrimination, all applicants for a job should be asked the same questions during an interview.

Answers

A thank you note sent after a job interview will serve as a reminder to those people you met is a false statement

2. False

3. False

4. False

What is an interview for a job?

A job interview is known to be a kind of conversation tak that is said to occurs between a said and potential employer and that of a job applicant.

Note that During the job interview, the employer is one who has a lot of opportunity to appraise any kind of  applicant's qualifications, as well as their appearance and full fitness in regards to the job opening.

Hence,  A thank you note sent after a job interview will serve as a reminder to those people you met is a false statement

2. False

3. False

4. False

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The acquisition of land by issuing common stock is.

Answers

The acquisition of land by issuing common stock is a common method used by companies to finance their expansion plans.

This process involves the company issuing shares of common stock to investors in exchange for funds, which are then used to purchase the desired land. This approach allows the company to avoid incurring debt while still obtaining the necessary capital to acquire the land. However, this method can also dilute the ownership of existing shareholders, as the issuance of new shares means that each individual shareholder now owns smaller percentage of the company. It is important for companies to carefully consider implications of using this method before making a decision, as it can have both positive and negative consequences on the financial health of the company.

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When labor productivity increases over time, generally A) it is due to increases in the number of workers B) So do average wages C) It results in higher For prices for goods and services .

Answers

Answer:

The answer is B.

Explanation:

Labour productivity is given as output per unit of labour input.

When output increases in an industry, ceteris paribus, the industry may have to lower prices in order to sell that increase. When output increases(labor productivity increases), workers will demand for higher wages. This is so because the efficiency of the workers has improved and there is need for compensation.

What is the purpose of collateral in a secured loan?

Answers

Answer:

To reduce risks against default.

The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of the inventory at the end of the year according to the average cost method?

Answers

Answer: a. $1,380

Explanation:

Using average cost method, the price of all inventory is the same and this cost is calculated by dividing the total cost of the inventory by the total units.

= (5 * 61) + (15 * 63) + (10 * 74) + (10 * 77)

= 305 + 945 + 740 + 770

= $2,760

Average cost = 2,760/ (5 + 15 + 10 + 10)

= $69 per unit

Total units for the year = 5 + 15 + 10 + 10 = 40 units

Total units on hand = 20 units

Total sold = 40 - 20 units

Cost of goods sold = 20 * 69

= $1,380

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