1. A U.S. company anticipates that it will sell merchandise for €100,000 at the end of August and receive payment for it at the end of October. On May 1, when the spot rate is $1.20 and the forward rate for delivery on October 31 is $1.21, the company enters a forward contract to sell €100,000 on October 31. The forward contract qualifies as a cash flow hedge of the forecasted sale. The company sells the merchandise on August 30, when the spot rate is $1.232 and the forward rate for October 31 delivery is $1.23 and receives payment of €100,000 and closes the forward contract on October 31, when the spot rate is $1.24. The company has a December 31 year-end. What is the net exchange gain/loss for the year related to this transaction? A. $200 net gain B. $1,800 net loss C. $200 net loss D. $-0-

Answers

Answer 1

Answer:

C. $200 net loss

Explanation:

The net loss or gain is calculated on hedging to determine whether the hedge has been beneficial for the company or not. Hedging is a process to transfer exchange rate movement risk. This is usually suitable for the companies who have receipts or payments in foreign currencies.

The hedging gain loss can be calculated as:

Forward rate at the time of contract - spot rate today

$1.21 - 1.232 = 0.0232


Related Questions

Sarah’s marketing team was beginning the process of developing a new product to expand their current product line and/or mix. At her very first meeting, she had the team write on the board their objectives within the marketing department, the business unit, and corporation, the characteristics they’d like their new product to have its role within the current marketing offerings, and the target market they would be targeting. This indicates that Sarah and her team were at the ___________ stage of the new product development process.

Answers

Answer: New-product strategy

Explanation:

Based on the information given in the question, Sarah and her team were at the new product strategy stage of the new product development process.

This is a strategy that is used to develop a new product. The strategy helps to answer questions such as who will benefit from the products, the goals of the company and other necessary details.

Which of the following documents are NOT considered permanent records?

Answers

Answer:

Birth and death certificates

11. HydroGrow is considering building a new greenhouse in which to grow tomatoes. The board meets and decides that this is the right thing to do. Before they can put their plans into action, the interest rate increases. The present value of the future revenue from this investment project a. is now lower than it was before, and so Hydro Grow is less likely to build the building. b. is now lower than it was before, and so HydroGrow is more likely to build the building. c. is now higher than it was before, and so HydroGrow is less likely to build the building. d. is now higher than it was before, and so HydroGrow is more likely to build the building.

Answers

Answer:

a. is now lower than it was before, and so Hydro Grow is less likely to build the building.

Explanation:

The interest rate increase will reduce the net present value of the project as the lenders of fund will demand more interest and since the Weighted Average Cost of Capital of the project will increase. The increased WACC will cause the project to be more riskier and since the future benefit of the project will be reduced.

Which diagram best represents these elements of the Word window?





Mark this and return

Answers

Answer:

Explanation:

Option B

PLEASE HELP!! 20 POINTS

Complete the following sentence.
Community ___________ work together to confront problems that face multiple organizations.

WILL MARK BRAINLIEST IF CORRECT

Answers

Answer:

Members

Explanation:

If cash received from Mr. O.I.Felix is credited to Messrs Y.K. Grace and co, which kind of accounting error has occurred?​

Answers

Answer:

Error by commission

Explanation:

The two accounts in the question are receivables so that they are of the same class. Thus, crediting Messrs Y.K. Grace and co's account instead of Mr. O.I. Felix is an error by commission.

Error by commission is an error that do not require a suspense account to correct it because it does not affect the trial balance. To correct this error, debit Messrs Y.K. Grace and co's account by the same amount, then credit Mr. O.I. Felix's account by the said amount.

1.what’s one category you wish fewer taxes were spent on ? why?

2.what’s one category you wish more taxes were spent on? why?

Answers

Answer:I wish fewer taxes were spent on health. Although health is an essential part of everyone's life

I feel there are more significant aspects of society that need to be addressed such as the Federal Debt or Veteran's Benefits.

I wish more taxes were spent on public maintenance at parks or any government places, mostly because the bathrooms are always filthy.

Explanation:

Products sold by companies in the United States to consumers in China are exports.
True
O False

Answers

The answer is True if I’m correct

Answer:

True

Explanation:

1) Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 30 percent for the next three years, with the growth rate falling off to a constant 4 percent thereafter. If the required return is 11 percent, and the company just paid a dividend of $2.15, what is the current share price

Answers

Answer:

P0 = $60.23475 rounded off to $60.23

Explanation:

To calculate the market price of the stock today, we will use the two stage growth model of DDM. The two stage growth model calculates the values of the stock today based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D0 * (1+g1) / (1+r)  +  D0 * (1+g1)^2 / (1+r)^2  +  ...  +  D0 * (1+g1)^n / (1+r)^n  +  [(D0 * (1+g1)^n * (1+g2))  /  (r - g2)] / (1+r)^n

Where,

D0 is the dividend today g1 is the short term growth rate g2 is the long term or constant growth r is the required rate of return on the stock

P0 = 2.15 * (1+0.30) / (1+0.11)  +  2.15 * (1+0.30)^2 / (1+0.11)^2  +  

2.15 * (1+0.30)^3 / (1+0.11)^3  +  [(2.15 * (1+0.30)^3 * (1+0.04)) / (0.11 - 0.04)] / (1+0.11)^3

P0 = $60.23475 rounded off to $60.23

(03.02 LC)
Which of these might decrease the length of a mortgage loan?
Property taxes
O Insurance
O Amount owed
Collateral

Answers

Answer:

D.) Collateral

Explanation:

Tbh I'm not confident on this choice, but real estate basically is just a fancy term for property, for those who don't know. A collateral is a piece of property that can be sold by the lender to recover all or part of a loan if the borrower fails to repay. So with that being said, the only logical choice in my opinion would be D, or Collateral.

Collateral might decrease the length of a mortgage loan. As it minimises the risk for the mortgage loan.

What is mortgage loan?

Mortgage loan is the fund that is provided to the lender against the immovable assets or property, or collateral to the Borrower. The lender used to keep the assets until their loan is repaid by the person.

Thus, option C is correct.

For more details about mortgage loan, click here:

https://brainly.com/question/15082835

#SPJ2

Which statement describes a benefit of credit cards over debit cards

Answers

Answer:

A

Explanation:

Credit cards allow you to buy things even without the full funds.

Debit cards do not.

If the United States imports more than it exports, then this means that Group of answer choices the demand for dollars is likely to exceed the supply in the foreign exchange market, ceteris paribus, and the U.S. dollar would be under pressure to appreciate against other currencies. the U.S. dollar would be under pressure to appreciate against other currencies. the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus. the demand for dollars is likely to exceed the supply in the foreign exchange market, ceteris paribus.

Answers

Answer:

the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus.

Explanation:

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.

Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time.

If the United States imports more than it exports, then this means that the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus.

Generally, when import exceeds export there would be a deficit in the financial account of the country.

Hence, a deficit on the current account is because the value of goods and services exported is lower than the value of goods and services being imported in a particular country.

Which credit option carries the greatest loss if you are unable to recover it?



Answer: A $200 unregistered pre-paid card

Answers

The Financial Accounting Standards Board (FASB) issued the final

current expected credit loss (CECL) standard on June 16, 2016. The

new guidance particularly impacted community financial institutions

by modifying or replacing existing impairment models for financial

assets, such as trade receivables, loans, debt securities, and purchased

credit-deteriorated assets. This guide is meant to serve as a practical

and illustrative document to assist with implementation efforts.

So the answer is put it on my debt.

The credit option that would lead to you having the greatest loss if you don't recover it is A $200 unregistered pre-paid card.

Why would an unregistered prepaid card causes losses?

A prepaid card is one that you load money into before you use it. When this is unregistered, it means that certain details have not yet been provided.

Unregistered prepaid cards can cause losses because there are less protections by the issuer if it is stolen or lost. This is why it is important to register your cards when you acquire them.

Find out more on prepaid cards at https://brainly.com/question/1985056.

#SPJ2

Which of the following database object hold data?
Reports
Tables
Forms
All of the above

Answers

Answer:reports

Explanation:

Carrie burnside, single. earns $350.15 weekly. claims 1 allowance. what is the FIT withheld?

Answers

Answer: $29.00

Explanation: Use the federal income chart.

Claims 1 allowance is $29

Given:

Carrie burnside single weekly earns = $350.15

Find:

Claims 1 allowance

Computation:

According to Federal income tax withheld rules

Claims 1 allowance = $29 (If earning per week is $350 to $360)

So,

Claims 1 allowance = $29

Learn more:

https://brainly.com/question/17092810?referrer=searchResults

Which of the following is best for targeted marketing tactics? Select one.

a. LinkedIn
b. Billboards
c. Radio commercials
d. Banners

Answers

Answer:

C

Explanation:

I think it is C because radio commercials seem WAY more convincing.

Let me know if it helps! :)

MAKE ME A KRABBY PATTY SO I CAN GIVE IT TO PLANKTON!!!

1. What are the three basic categories of consumer goods? Briefly explain each and clearly
differentiate among them

Answers

There are three main types of consumer goods: durable goods, nondurable goods, and services.

Durable goods are consumer goods that have a long-life span (e.g. 3+ years) and are used over time. Examples include bicycles and refrigerators. Nondurable goods are consumed in less than three years and have short lifespans. Examples of nondurable goods include food and drinks. Services include auto repairs and haircuts.

Consumer goods are also called finals good, or end product, because they are the ultimate output of a productive process that occurs over time.

What is the function of the cell wall?

A tells the cell what to do

B lets water pass in and out

C lets molecules pass in and out

D gives the plant structure and support

Answers

Answer:

D

Explanation:

provides the cell with both structural support and protection, and also acts as a filtering mechanism. ... In bacteria, the cell wall is composed of peptidoglycan.

Suppose the value of all the stocks in a fund's portfolio is currently $500,000. The fund has $450,000 in liabilities and has sold 2,500 shares of its fund to investors. Find the NAV.

Answers

Answer:

Well your currency will come up due to the investors only if it is a great good market platform The liabilities you must take time to pay them back it might cause interest and money building vlaues or taxes or possibly jail time

Explanation: I really hope i helped

If he fund has $450,000 in liabilities and has sold 2,500 shares of its fund to investors. The NAV is $20.

Net asset value

Using this formula

NAV = (Assets - Liabilities) / Total number of outstanding shares

Let plug in the formula

NAV=($500,000-$450,000)/2500 shares

NAV=$50,000/2500 shares

NAV=$20

Therefore the net asset value is $20.

Learn more about net asset value here:https://brainly.com/question/25961936

How much does it cost to build a private school in Dubai?

Answers

Answer:

14 per cent

Explanation:

The circumference of a circular track is 154m. Finid the diameter of the track​

Answers

Answer:

Diameter = 49 meters.

Explanation:

Given the following data;

Circumference of circle = 154m

To find the diameter;

Method I.

Circumference of circle = πD

We know that π = 22/7

154 = 22/7 × D

Cross-multiplying, we have;

154 × 7 = 22D

Diameter, D = 1078/22

Diameter, D = 49 meters.

Method II.

Circumference of circle = 2πr

Substituting into the equation, we have;

154 = 2πr

We know that π = 22/7

154 = 2 × 22/7 × r

Cross-multiplying, we have;

154 × 7 = 44r

1078 = 44r

Radius, r = 1078/44

Radius = 24.5m

But diameter = radius * 2

Diameter = 24.5 * 2

Diameter = 49 meters.

Items a through l represent possible errors and fraud that you suspect may be present at rex company. the accompanying list of auditing procedures represents procedures that the auditor would consider performing to gather evidence concerning possible errors and fraud. for each item, select one or two procedures, as indicated, that the auditor most likely would perform to gather evidence in support of that item. the procedures on the list may be selected once, more than once, or not at all.

Answers

Answer:

a. Compare the details of cash receipts with journal entries.

b. Prepare a bank transfer schedule.

c. Confirm the terms of borrowing with the lenders agreement.

d. Send request to confirm the entity's account receivable balance.

e. Inspect payroll data of employees and cross check with the transaction recorded.

f. Obtain cut off bank statement to reconcile the transaction.

g. Examine the selected repair order and physically examine the equipment whether repair work is don or not.

h. Examine the supporting documents for the invoice such as purchase order, goods received note and Purchase requisitions.

i. Inspect the payroll endorsements for similar handwriting.

Explanation:

Audit is mandatory for all the companies. The verified financial statements are considered as reliable because they are rechecked by the auditors and if any error or fraud is found it is immediately corrected and rectified. Audit is a critical process which involves objectivity and integrity of a person. The auditors must be independent and they should not have any familiarity with the business employees or owners.

The activities of people traveling to and staying in places outside their usual environments for not more than one consecutive year for leisure, business, and other purposes is called _____.

transportation
travel
tourism
hospitality

Answers

Answer:

Tourism is the right answer

I make YT intros, does that count as graphic design? And can I put it on my resume?

Answers

I don't do a thing. I just sit, eat food and watch kdrama. Should I keep mine in my resume? but u can keep urs cause that's actually a work.

Answer:

- Yes, it's graphic design.

- Yes, because it's work.

Explanation:

Would you ever consider opening a restaurant? Why or why not?

Answers

Answer:

yes

Explanation:

because I would be surrounded by food at all times

Answer:

yes

Explanation:

I would be able to design my own menu and maybe make some animatronics.

;)

Tim is 16 years old,a high school student, and lives with hi parents.He earned $5,200 and his part-time job. Select the best possible answer.(Only 1 answer)

Answers

Answer:

the second one

Explanation:

prettyu sure,

only can claim is tim parents and he has no other choice but to return the file tax return

Current tax laws allow Tim's parents to claim Tim as a dependent; Tim has the option to file a tax return

According to the IRS, Tim can be claimed as a dependent by his parents because:

He is their son He is a student who is younger than 23 He lives with his parents

He also has the option but not the obligation to file a tax return because his gross income is less than $12,200 as a dependent.

In conclusion, Tim can be claimed as a dependent by his parents but he does not have to file a tax return.

Find out more at https://brainly.com/question/19910807.

Which represents the most accurate description of how credit cards differ from loads

Answers

Answer:

C

Explanation:

Loans are typically for something that will build your value. Credit cards are not.

The option B gives the accurate difference between a credit card and a loan. The credit card payments typically vary from month to month, while the loan payments remain the same as long as the interest rates remain the same.

What is a Credit Card?

A credit card is a form of borrowing and allows you to borrow up to the credit limit set for your card. Credit cards let you borrow money from a bank under the agreement that you'll repay it by your bill's due date or incur interest charges.

A credit card is a type of payment card in which charges are made against a line of credit instead of the account holder's cash deposits. When using a credit card, you will need to make at least the minimum payment every month by the due date on the balance.

Learn more about credit card here,

https://brainly.com/question/27312833

#SPJ2

Your client purchases land that has been severely eroded. He plans to fill the holes caused by the erosion with waste material. Prepare a memorandum discussing any cost recovery deductions that can be claimed on this property.

Answers

Answer:

Dismantling cost is the expense which is caused when the asset is about to bring in its original state when it was not used.

Explanation:

To: Director Finance

From: Business Analyst

Subject: Cost recovery for dismantling

It is to bring into your knowledge that the land area near the plant was used by our company several years ago. The company has decided to sell it to one of our client. He has agreed to purchase the land but the erosion caused due to plant and manufacturing activities need to be restored. For this purpose we have decided to fill the erosion holes with waste material.

Your Kind approval is required for the process.

what is an important function of the Federal trade commission?

A. Inspecting workplaces for safety violations

B. Deciding if discrimination complaints are valid

C. Negotiating trade agreements

D. Identifying unfair pricing strategies ​

Answers

Answer:

I think it might be B.

Explanation:

The important function of the federal trade commission is to identify unfair pricing strategies ​Thus option D is correct.

What is the federal trade commission?

A federal trade commission is an independent agency of the principal state whose main aim is to enforce the civil US antitrust laws.

Along with the promotion of customer protection and shares the jurisdiction over the federal civil antitrust enforcement with the department of justice.

Find out more information about the Federal trade commission.

brainly.com/question/4716509

The most common type of two-year college is called a(n):
O A. trade college.
B. liberal arts college.
C. community college.
O D. apprenticeship college.

Answers

The answer is community college

Answer:

c.

Explanation:

just took the test

Other Questions
A table is on sale for $469, which is 33% less the regular price. What is the regular price need help with this..... Find the slope of the line that passes through the following points.(2.10) and (5.8) What is the most likely cause of vitamin toxicity? a. not eating enough fruits and vegetable b. taking excessive supplements c. eating fish and chicken rather than red meat d. becoming a vegetarian WILL GIVE BRAINLYESTWhat natural disaster devastated the Plains in the 1930s? When solving for a, the first step is to divide by 2.32= 2a -8Question 9 options: True False In a 30-60-90 triangle, the long leg is 60, what is the short leg Pleaseeeee answer I will mark brainliest for best answer ^>^ Why do we feel the heat from the sun even though it is far away from Earth?O The sun is farther away from Earth than any other star.The sun is closer to Earth than any other star.O The sun is the largest star.O The sun is the brightest star. Amelia, recuerda que se ha propuesto no consumir ms de 260Cal (Caloras) en su desayuno.Si Amelia se sirve una taza de agua tibia echndole 3 cucharaditas de Nesquik y una cucharadita de azcar (17 Cal). Tambin va a comer un pan integral (180 Cal).Cumplir Amelia con lo que se ha propuesto? Explica. Fill in the blank. Consider the inverse square law: When light leaves a light bulb, it spreads out over more and more space as it goes. This makes the light thinner, with less and less light present the further from the light bulb we look. If we stand looking at a light bulb and see how bright it is, then move to be four times farther away from the light bulb, the light from the bulb will look ____________ less bright. Group of answer choices Consider the expression x + 6. What is the value of the expression when x = 4 How did the 1996 Olympics benefit Atlanta? Check all that apply.A new plaza was built in the heart of the city.The city gained a new aquarium and stadium.A variety of new infrastructure was constructed.Housing for athletes became dorms for two universities.A new interstate highway system was created for the city.A new international airport was built just outside of the city. 7. The land west of the Mississippi River was thought to beA.ValuableB.ImportantC.WothlessD.Expensive A nonreligious set of laws established by a nation to provide order is known as __________. A. civil law B. emirate law C. Sharia law D. tribal law Please select the best answer from the choices provided A B C D a piggy bank contains $2.00 in nickels and dime. the number of dimes is 5 more than than twice the number of nickels. How many dimes are in the piggy bank? When it gets cold outside, rocks slightly shrink. When the rocks are in extreme heat, they can expand and crack. What factor is responsible for the weathering being described? Group of answer choices Gravity Ice Plants Temperature PLEASE HELP ME B4 I LOOSE IT THANK YOU! According to the article, "How Can Your Smartphone Make Water Safe to Drink," less than 1% of phone's battery disinfects how much water? * Read the excerpt from Team Moon.The heavier the spacecraft, the harder it is to launch. And fuel is heavy. So it was critical to pinpoint the fuel needed, add a cushion, then take no more than necessary. But now, because the landing was taking far longer than planned, the fuel was almost gone. Mission Control wanted Neil to take as much time as he needed and fly the LM as near empty as possible only because they wanted him to make the landing. But if he ran out of fuel above the surface, in all likelihood the LM would crash onto the moon. So they were trying to time it to the last possible second before calling an abortcalling off the landing.Which detail from the excerpt best identifies a problem?And fuel is heavythe fuel was almost gonethey wanted him to make the landingthey were trying to time it to the last possible second