your company will receive cad 1,200,000 in 90 days. the 90 day forward rate for canadian dollars is $0.80 and the current spot rate is $0.75. if you use a forward hedge, estimate the cost of hedging the receivable if the spot rate for cad 90 days later turns out to be $0.82
Answers
The cost of hedging the receivable using a forward hedge can be estimated by calculating the difference between the forward rate and the spot rate on the day of the hedge and multiplying it by the amount of the receivable.
Given:
Receivable amount = CAD 1,200,000
90-day forward rate = $0.80/CAD
Current spot rate = $0.75/CAD
Expected spot rate in 90 days = $0.82/CAD
To hedge the receivable using a forward hedge, the company will lock in the forward rate of $0.80/CAD for the 90-day period. If the spot rate in 90 days turns out to be higher than the forward rate, the company will benefit from the hedge, and if it turns out to be lower than the forward rate, the company will incur a cost.
In this case, if the spot rate in 90 days turns out to be $0.82/CAD, the cost of hedging can be calculated as follows:
Cost of Hedging = (Forward Rate - Spot Rate) x Receivable Amount
Cost of Hedging = ($0.80/CAD - $0.82/CAD) x CAD 1,200,000
Cost of Hedging = -$0.02/CAD x CAD 1,200,000
Cost of Hedging = -$24,000
Therefore, if the spot rate for CAD in 90 days turns out to be $0.82/CAD, the cost of hedging the receivable using a forward hedge will be -$24,000. This means that the company will benefit from the hedge as it locked in the forward rate of $0.80/CAD and the actual spot rate turned out to be higher.
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Related Questions
Why does a price floor lead to surpluses? Why does a price ceiling lead to shortages?
Answers
Answer:
Shortage: there is more demand than there is at the equilibrium price. There is also less supply than there is at the equilibrium price, thus there is more quantity demanded than quantity supplied.
Your pretty much short in supply and cant fulfill the demand
While surplus
When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result.
Theirs a a large amount of supply due to the pricing most likely beign high
Explanation:
Jeramlah is working with a difficult client. After mixing up a paint order, the client says, "Of course you mixed up this paint order. You never listen
to me, and you're always picking out weird looking colors!" What type of communication is the client using?
A. passive
B. Aggressive
C. Non-aggressive
D. Assertive
Answers
Answer: i would say he is being aggressive towards the guy
Explanation:
The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $91,408. The bank statement indicated a balance of $126,590 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $33,700. b. A deposit of $18,900, representing receipts of June 30, had been made too late to appear on the bank statement. C. The bank collected $22,042 on a $20,600 note, including interest of $1,442. d. A check for $1,600 returned with the statement had been incorrectly recorded by Pala Medical Co. as $160. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. e. A check drawn for $680 had been erroneously charged by the bank as $860. f. Bank service charges for June amounted to $40. Instructions 1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Add: & Deduct: will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 2. Journalize the necessary entries. Refer to the Chart of Accounts for exact wording of account titles. 3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash?
Answers
The amount reported as cash on the balance sheet for Pala Medical Co. on June 30, 20Y1, would be $125,108.
Bank Reconciliation:
Bank Balance per Bank Statement: $126,590
Add: Deposit in transit: $18,900
Adjusted Bank Balance: $145,490
Book Balance per Pala Medical Co. Records: $91,408
Add: Outstanding checks: $33,700
Adjusted Book Balance: $125,108
Journal Entries:
a. To record the collection of the note:
Debit: Notes Receivable $20,600
Debit: Interest Receivable $1,442
Credit: Interest Income $1,442
Credit: Notes Receivable $20,600
b. To record the correction of the incorrectly recorded check:
Debit: Accounts Payable $1,440
Debit: Cash Short and Over $160
Credit: Cash $1,600
c. To record the correction of the bank error:
Debit: Cash $180
Credit: Cash Short and Over $180
d. To record the bank service charges:
Debit: Bank Service Charges Expense $40
Credit: Cash $40
Cash reported on the balance sheet:
Adjusted Book Balance: $125,108
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Which inventory costing method assumes that the units sold are the most recent units purchased? multiple choice question. average cost fifo lifo
Answers
The inventory costing method assumes that the unit sold is the most recent unit purchased referred to as Specific Identification
Explain about inventory costing method.
An organization employing the average cost inventory costing approach would allocate costs to goods sold by averaging the expenses of purchasing inventory.
Instead of charges connected to the moment of purchase or the age of the goods, this average cost is applied to each item of inventory.By definition, the average cost/weighted average for the cost of goods sold must be adjusted each time a product is sold or added to inventory in order to be correct.
This is frequently done automatically by the inventory management system of a business.The majority of enterprises that use the average cost technique sell or distribute non-perishable commodities in a non-sequential way. In these processes, it is common for fresh stock to be mixed in with the older stock.Learn more about inventory costing here,
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A worksheet is a multiple column form that facilitates (make easy) the O a. Analysis process O b. Identification of events O c. Preparation of financial statements O d. Measurement process
Answers
The correct answer is C. A worksheet is a multiple-column form that facilitates (makes easy) the Preparation of financial statements.
An economic aim is any plan you have for your cash. you could have short-time period monetary dreams (like saving up $1,000) or lengthy-term financial goals (like investing for retirement). You must set desires for every vicinity of your lifestyle, however, having financial goals allows you literally placed your money wherein your intention is.
Key brief-term desires consist of putting a price range, reducing debt, and starting an emergency fund. Medium-term dreams should encompass key insurance rules, while lengthy-term goals want to be centered on retirement.
Examples of various sorts of monetary desires encompass: Create a price range. store for retirement and different lengthy-term plans. keep for short-time period and mid-time period plans. pay off debt.
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Christy flips through her monthly issue of cosmopolitan. After seeing nine different perfume advertisements, she goes to the mall and purchases romance by ralph lauren. This example represents which of the segmentation criteria discussed in class?.
Answers
Christy looks through her copy of Cosmopolitan from each month. She visits the mall and buys Romance by Ralph Lauren after viewing nine different perfume advertising. This illustration illustrates the segmentation criteria for reachability.
More about segmentation:
Homogeneous groups of individuals with discernible shared characteristics must be developed in order to segment. They could be things like their geographic location, age, lifestyle, or even how they behave on your website. These are what we refer to as segmentation criteria.
People in the same segment are anticipated to have similar expectations and should react similarly to an offer, certain type of content, or specific message. By comparing several types of data, you could obtain a more thorough study of your clientele. Let's review the most often used segmentation guidelines.
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The Government of Zambia has decided to pursue a dual mandate of price stability and economic growth in the conduct of monetary policy. Advise on the possibility of the country achieving both price stability and economic activity stability in the case of a temporary supply shock. Ensure to demonstrate this with the aid of the Aggregate Demand and Aggregate supply framework.
Answers
In the short run, a temporary supply shock, such as an increase in oil prices or a natural disaster affecting production, can lead to a decrease in aggregate supply.
This will result in a leftward shift of the AS curve. As a result, the price level will increase, leading to inflationary pressures, and output will decline, causing a slowdown in economic activity. To address the temporary supply shock and achieve price stability, the central bank may choose to tighten monetary policy by raising interest rates. This will reduce aggregate demand, shifting the AD curve to the left. As a result, inflationary pressures may be mitigated, helping to stabilize prices. However, this contractionary monetary policy can also exacerbate the decline in economic activity, leading to lower output and potentially increasing unemployment. On the other hand, if the government focuses on maintaining economic activity stability, it may choose expansionary monetary policy to stimulate aggregate demand. This can involve lowering interest rates and implementing fiscal measures such as increased government spending or tax cuts. These policies would shift the AD curve to the right, boosting economic activity. However, this expansionary policy may lead to higher inflation due to the upward pressure on prices caused by the temporary supply shock.
Therefore, achieving both price stability and economic activity stability simultaneously in the case of a temporary supply shock is challenging.
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Your Assignment, Part III
As the final part of this assignment, you will apply your understanding of tort law to scenarios in which a business is the defendant (or defendant tort-feasor). For each scenario, describe the specific type of tort case being brought against the defendant. Then, explain what the defendant will need to prove in order to get a ruling in their favor. Finally, describe the penalty that may be assigned to the defendant if the court rules against them.
1. Mr. Shanks goes to Hyperion Hospital to have a diseased kidney removed. After the surgery, he finds that his symptoms come back and grow even worse. When he returns to the hospital to find out what is happening, the hospital staff discovers that the surgeon removed Mr. Shanks’ healthy kidney instead of the diseased one.
a. What specific type of tort case against the business would this be? Explain.
b. What conditions does the plaintiff need to prove? What specific proof (if any) does the plaintiff have in this scenario? Organize this information into a table.
c. What penalty may the defendant expect (if any) as the outcome of this tort case, and why?
2. Two energy drink companies, Red Hornet and Blackout, have been competing with each other for years. In Blackout’s latest ad campaign, they have Red Hornet’s cartoon mascot making disparaging comments about its own product. Blackout’s ad also includes false claims that Red Hornet uses ingredients grown using slave labor. After the ad campaign runs, Red Hornet notices a drop in its energy drink sales.
a. What specific type of tort case against the business would this be? Explain.
b. What conditions does the plaintiff need to prove? What specific proof (if any) does the plaintiff have in this scenario? Organize this information into a table.
c. What penalty may the defendant expect (if any) as the outcome of this tort case, and why?
3. Larissa works at Opalescent, a high-end jewelry store. A customer comes in on a very busy day and complains about how long it takes for anyone to assist him. Larissa apologies, but the customer continues to complain. The customer, a very large man, soon begins insulting her personally and threatening her with violence. Larissa hits him with pepper spray, incapacitating him.
a. What specific type of tort case against the business would this be? Explain.
b. What conditions does the plaintiff need to prove? What specific proof (if any) does the plaintiff have in this scenario? Organize this information into a table.
c. What penalty may the defendant expect (if any) as the outcome of this tort case, and why?
Please Help:)
Answers
Answer:
ok
Explanation:
which risks do you think boxes-and-stuff might face?
Answers
Answer:
I think the risks boxes and stuffs might face is cracking or being destroyed through delivery time through transportation.
Explanation:
HOPE IT HELPS
the systematic liquidation of a sum of money is provided by a(n)
Answers
The systematic liquidation of a sum of money is provided by an annuity. An annuity refers to a financial product or contract that provides a series of periodic payments over a specified period.
An annuity commonly used to provide a steady income stream or to liquidate a sum of money systematically. When an individual or organization chooses to liquidate a sum of money through an annuity, they enter into an agreement with an insurance company or financial institution. The annuity contract specifies the payment amount, frequency (such as monthly, quarterly, or annually), and the duration of the payments.
The annuity payments can be structured in various ways. For example, a fixed annuity provides regular payments of a predetermined amount, while a variable annuity offers payments that fluctuate based on the performance of underlying investments. There are also immediate annuities, where payments begin immediately after the initial investment, and deferred annuities, where payments are postponed to a future date.
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Predatory lenders get their negative reputation from . . .
a. Discreetly selling personal bank information
b. Limiting the amount of time a borrower has to use a loan
c. Taking advantage of people during the Great Depression
d. Charging high fees for loans and targeting desperate people
Answers
Predatory lenders get their negative reputation by Charging high fees for loans and targeting desperate people. The correct option is d.
Who are predatory lenders?Predatory lenders are those practices, broadly defined, that are the fraudulent, deceptive, and unfair tactics some people use to dupe us into mortgage loans that we can't afford. Burdened with high mortgage debts, the victims of predatory lending can't spare the money to keep their houses in good repair. They strain just to keep up with their mortgage payments. Often, the strain is too much. They succumb to foreclosure. Their houses have been stolen from them.
The Office has prosecuted and will continue to prosecute the worst predatory lenders.
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The Clean ’n Green recycling company identified 150 apartment complexes (worth~$500K annually in potential contracts) that don’t offer recycling for tenants even though tenants have requested the service. A recent change in city laws mandates that large apartment complexes must recycle. The city is offering a subsidy to cover the first two years of a recycling service to ensure the law can be met. Clean ’n Green has not contacted the complex owners yet. Which one of the criteria for defining a potential market is missing from this analysis?
Answers
Answer:
an organization has the ability to pay for the service
Explanation:
Potential markets are defined as business opportunities that can be captured in the future. For example of a company plans to expand its product offerings to a new segment of customers, the new set of customers are it's potential market.
Criteria for potential market includes: substantial number of customers, ability to pay for a service, identifiable and measurable, and accessibility.
In this scenario Clean ’n Green recycling don’t offer recycling for tenants even though tenants have requested the service, and recent change in city laws mandates that large apartment complexes must recycle.
The organisation is not meeting the criteria of having the ability to pay for the service.
Variable costs ______. remain constant in total and vary per unit. remain constant per unit and vary in total. remain constant both in total and per unit. vary both in total and per unit
Answers
Answer:
vary both in total and per unit
Explanation:
Variable costs are the costs that vary depending on the level of output.
Examples of variable costs are: energy used to power machines involved in the production process, labor costs, and maintenance costs.
Variable costs vary both in total and per unit.
PLEASE HELP I'VE BEEN TRYING TO FIGURE THIS OUT FOREVER Select the correct answer. According to TARP, on average, what percentage of unhappy customers leave without complaining?
A. 10 percent
B. 25 percent
c. 95 percent
d.50 percent
Answers
The answer is 95%.
The percentage is 95%, it is actually 96% but 95 is the closest answer.
Answer:
c.) 95 percent
Explanation:
took on edmentum is correct
This circle graph shows the results of a survey that asked people to identify their favorite type of music. What percent of people chose rock or country as their favorite type of music?
Answers
Answer:
answer 45
Explanation:
Answer:
45%
Explanation:
What public works project was built to help with unemployment during the great depression?.
Answers
Answer: Im also taking this test and i believe the answer is Hoover Dam i might be wrong
Explanation: Hoover Dam
What security risk management term means the method or technique a hacker uses to compromise a system?.
Answers
Security risk management is the ongoing process of identifying these security threats and putting policies in place to minimize them.
When estimating risk, factors such as the likelihood that well-known adversaries will exploit flaws and their consequences on precious assets are taken into consideration.
Managers of corporate security recognize and lessen possible dangers to an organization. For instance, they evaluate safety and security procedures to guarantee the protection of a company's personnel, goods, facilities, and data.
The most typical hacking method is malware. Any "code produced by cyber-attackers, designed to do substantial harm to data and systems or to obtain unauthorized access to a network" is what one anti-virus company defines as malware.
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Drag each option to the correct location.
Match the scenarios to the factors that affect the labor market.
foreign direct investment
outsourcing
immigration
Answers
Each scenario should be matched to the factors that affect the labor market as follows:
Immigration: Carlos is moving from Mexico to the United States because he got a job in a bank. He had his interview last month, and the bank agreed to hire him because he was willing to work for 10% less than most American workers, even though he has the same qualifications.Foreign direct investment: A US supermarket chain is going to open a few supermarkets in Europe because a recent survey showed that the chain has a huge potential for profits in Europe.Outsourcing: A renowned US information technology firm has recently signed a contract with a company based in the Philippines. The Filipino company will handle the accounts of the US firm. The US firm made this decision to reduce labor costs.What is immigration?Immigration can be defined as the movement of a group of people from one geographical region to another geographical destination such as a city, especially in search of any of the following:
Good governanceSecurityBetter living conditions.WorkJobsSocial amenitiesWhat is a foreign direct investment?A foreign direct investment (FDI) simply refers to a type of investment which is made by an individual or business organization (investor) into an investment market that is located in another country.
In conclusion, an example of foreign direct investment (FDI) is a US supermarket chain that is planning to open a few supermarkets in a country in Europe.
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Answer:
Post Test: Free Market and Businesses
Unit: 2
Economics
Question #12
__________________________________________________________
This is 100% right because I took the test
Go to explanation for picture with answers
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Explanation:
Here's the picture and I hope this helped!
Have a nice day!
all income that a business receives over a period of time is called profit. True/False
Answers
Untrue Profit is the term used to describe all income that only a business makes over time.
Which income do you mean?In general, the phrase "income" refers to the sum of money, assets, and other transfers in value obtained over a predetermined time frame in exchange for goods or services. The definition of income depends on the context where it's utilized; there isn't a single, universal definition.
Describe the income formula.A net income formula is determined by the distinction between the total amount of revenue and total expenses. Net Income ≈ Total Revenue – Total Costs is the formula used to calculate it.
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PLEASE ANSWER THESE IT WOULD BE A HUGE HELP
Each time you sell a stock to make a profit, you must pay tax on the money you make (the
difference between the buying and selling price). This is called capital gains tax. Do you think
capital gains tax is a good idea? Why or why not?
Answers
What is an emergency fund?
Answers
Answer:
box of money.
Explanation:
it is for money so u can get the money for emergency's
explain processes of distribution channels in economics
Answers
Answer:
Distribution channels in economics refer to the various intermediaries that are involved in the movement of goods and services from the producer to the final consumer. These intermediaries play a critical role in ensuring that products reach the end-users in the most efficient and effective manner possible.
The following are the processes involved in distribution channels in economics:
1. Producer: The first step in the distribution channel is the producer. The producer is the entity that creates the product or service. The producer may be a manufacturer, a farmer, or a service provider.
2. Wholesaler: The next step in the distribution channel is the wholesaler. The wholesaler buys products in bulk from the producer and then sells them to retailers. Wholesalers are often used when the producer cannot sell directly to retailers due to logistical or other reasons.
3. Retailer: The retailer is the next step in the distribution channel. The retailer buys products from the wholesaler or directly from the producer and then sells them to the final consumer. Retailers are often used when the producer cannot sell directly to the final consumer due to logistical or other reasons.
4. Consumer: The final step in the distribution channel is the consumer. The consumer is the end-user of the product or service. The consumer buys the product or service from the retailer.
5. Logistics: Logistics is an important process in the distribution channel. Logistics involves the movement of products from the producer to the retailer or directly to the consumer. Logistics includes transportation, storage, and delivery.
6. Marketing: Marketing is another important process in the distribution channel. Marketing involves promoting the product or service to potential consumers. Marketing includes advertising, public relations, and sales promotions.
7. After-sales service: After-sales service is the final process in the distribution channel. After-sales service involves providing support and assistance to consumers after they have purchased the product or service. After-sales service includes warranties, repairs, and customer service.
In conclusion, the distribution channel is a critical component of the economy. It ensures that products and services reach the end-users in the most efficient and effective manner possible. The various processes involved in the distribution channel include the producer, wholesaler, retailer, consumer, logistics, marketing, and after-sales service.
Staind, Inc., has 7.5 percent coupon bonds on the market that have 10 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 8.75 percent, what is the current bond price?
Answers
Answer:
Explanation:
Assuming the face value of the bond = $1000. Interest = 1000*7.5% = $75
Current Price = Interest * PVAF (10 years, 8.75%) + Maturity Value * PVF (8.75%, 10 Years)
Current Price = $75 * 6.4889 + $1000*0.4322
Current Price = $486.67 + $432.20
Current Price = $918.87
So, the current bond price is $918.87
ve durel evaluation of your work.
Aa
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Hola
Activity
Lydia is a senior in high school. She works 20 hours a week at a popular clothing store. She is trying to save as much
money as possible for her college tuition. However, she has to buy a dress for prom, pay her car insurance, and get a
birthday gift for her sister. This week she received a $400 paycheck. She wants to deposit the entire check in her
savings account for her college tuition, but she stops herself. She decides instead to put $100 in the bank, spend $200
for her prom dress, pay $80 for her car insurance, and buy her little sister a $20 birthday gift. While shopping, she
sees a doll worth $21, which she thinks her sister will absolutely love. As a result, she decided to buy the more
expensive doll and spend less on her dress.
Did Lydia make an all-or-nothing or a marginal decision while spending her money?
Answers
Answer:
marginal decision
Explanation:
Marginal decision involves spending a little more or a little less than what has already been planned for based on the benefit to be gotten. If the marginal benefit exceeds the marginal cost, then the choice is a good choice. Marginal decision are made by using marginal analysis, that is comparing the cost and benefits of spending a little more or a little less.
In this scenario, she spends $1 more to buy her sister a doll because she thinks her sister would love it. The marginal cost in this case is $1. As a result on spending more on the gift, she spends less on her dress.
Oh.. I found my little kitty when I was Cycling in the park. I heard some noise. It was coming from a Box. When I opened it I saw a cute little kitten inside it. It was a newborn baby So I adopted it .
Answers
please help me with this account question I'm tryna make entries
Answers
Answer:
451
Explanation:
430+21
1234567890101112131415
Unions creates a balance of power between workers and Businesses? true or false
Answers
Answer:
true
Explanation:
Answer:
True
Explanation:
Unions reduce wage inequality because they raise wages more for low- and middle-wage workers than for higher-wage workers, more for blue-collar than for white-collar workers, and more for workers who do not have a college degree. Strong unions set a pay standard that nonunion employers follow.
Does international trade increase or decrease competition?
Answers
Market competition has increased as a result of global trade. This ultimately leads to more competitive pricing, which lowers the cost of the final product for the consumer.
Through commerce, nations can access commodities and services that might not otherwise be accessible domestically and grow their markets.
There is more rivalry as a result of globalization. This rivalry may be based on factors such as target market, technology adaptability, quick company response, cost and price of the product or service, etc.
A corporation can expand its market share by producing products at a lower cost and selling them for less money.
International trade is actually viewed more as a micro-economic phenomenon that is influenced by the tactics and conduct of businesses.
Thus, the discussion is on the factors that drive global competition and competitiveness between firms as well as between regions and nations.
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Someone who creates attractive presentations of food dishes for magazines is called which of the following?
a. food stylist
b. research chef
c. personal chef
d. food preparation worker
Answers
Answer:A
Explanation:
To show appreciation to a headhunter who has helped place you with an employer, you might: (Multiple Choice)
send a thank-you note
stay in contact
save him or her time by contacting the employer directly when you need information
refer other hardworking individuals to him or her
Answers
Answer:
• send a thank-you note
• stay in contact
• refer other hardworking individuals to him or her
Explanation:
A headhunter refers to an individual or a company that provides recruiting service with regards to employment on behalf of an employer. The employers hires headhunters in order to find individuals who meet a particular job requirement.
In order to show appreciation to a headhunter who has helped place an individual with an employer, the person can:
• send a thank-you note
• stay in contact
• refer other hardworking individuals to him or her
Option C is incorrect as saving him or her time by contacting the employer directly when an information is needed isn't ideal. Therefore, the correct options are A, B and D.