90-day forward rate for the euro is $1.07, while the current spot rate of the euro is $1.05. What is the annualized forward premium or

Answers

Answer 1

Answer:

7.6%

Explanation:

Calculation for What is the annualized forward premium or discount of the euro

Using this formula

Euro annualized forward premium or discount = [(F/S) - 1] x 360 days/90 days

Where,

F represent forward rate $1.07

S represent current spot rate $1.05

Let plug in the formula

Euro annualized forward premium or discount =[($1.07/$1.05) - 1] x 360 days/90 days

Euro annualized forward premium or discount =($1.019-1)×x 360 days/90 days

Euro annualized forward premium or discount =0.019×360 days/90 days

Euro annualized forward premium or discount =0.076×100

Euro annualized forward premium or discount = 7.6 %

Therefore the annualized forward premium or discount of the euro will be 7.6%


Related Questions

A market surplus occurs when: People cannot buy the amount of goods and services that they are willing and able to buy.

Answers

Answer: b. The quantity supplied exceeds the quantity demanded at a given price.

Explanation:

A market surplus is a situation where suppliers have supplied to the market, more goods than the demand can take at a given price.

This will lead to the suppliers having unsold goods and they will respond by reducing their prices so that they may be able to sell because the law of demand shows that when prices reduce for normal goods, quantity demanded increases.

A retail outlet for Boxo-witz Calculators sells 720 calculators per year. It costs $2 to store one calculator for a year. To reorder, there is a fixed cost of $5, plus $2.50 for each calculator. How many times per year should the store order calculators, and in

Answers

Answer:

The store should order 60 calculators, 12 times per year to minimize inventory cost.

Explanation:

Given that;

Annual demand = 720 calculators

Holding cost (Storage cost) (H) = $2 per calculator

Ordering cost (D) = $5

Economic order quantity (EOQ)

= √ 2 × A × D / H

= √ (2 × 720 × $5) / $2

= √ $7,200 / $2

= √ 3,600

= 60 calculators

Number of orders per year

= Annual demand ÷ EOQ

= 720 ÷ 60

= 12 times

Therefore, the store should order 60 calculators 12 times per year to minimize inventory cost.

Net Income: Multiple Choice Decreases equity. Represents the amount of assets owners put into a business. Equals assets minus liabilities. Occurs when revenues exceed expenses. Represents creditor claims against assets.

Answers

Answer:

Occurs when revenues exceed expenses

Explanation:

Net income is equal to revenue less expenses

Shareholders equity represents the amount of assets owners put into a business. It equals assets minus liabilities.

Liabilities represents the amount of assets owners put into a business. Equals assets minus liabilities.

What are the major problems caused by worldwide accounting diversity for a multinational corporation

Answers

Answer:

Need to reconcile accounting standards

Multinational companies will operate in different countries which may have different accounting standards. American companies for instance are meant to use GAAP but as multinationals will operate in a lot of IFRS using countries.

They will have to reconcile statements from these IFRS using companies to GAAP standards for disclosure requirements in the U.S.

They might also be required to convert their American GAAP statements to IFRS so that the countries they are in can perform investor analysis if need be.

Comparing statements is harder.

When the company has to make foreign decisions, it cannot just make them looking at the financial statements of the local subsidiary. It will have to convert that statement to the one they use so that they can compare effectively and be able to make informed decisions.

Risk of low quality Accounting information.

Some of the countries the MNC operates may not be adequately developed in the financial services sector to ensure proper accounting regulation which means the MNC runs the risk of receiving poor information from subsidiaries.

Which statement accurately describes a business plan?

A). It provides money to the business
B). It describes in detail the idea for the new business and how it will be operated.
C). It provides on how to use an exit strategy for the business.
D). It's meant to be a short summary.

Answers

The answer is B. It describes in detail the idea for a new business and how it will be operated.
I am not very smart lol but I think it is B if it is wrong no hate please

What impact is Walmart’s acquisition of nontraditional retailers likely to have on the shopping habits of Walmart’s customers?​

Answers

It’s usually Walmart because it’s economic value
Walmart is a major player in the retail industry. E-Commerce is another level. Several significant internet merchants with such a substantial market presence have posed a challenge to Walmart. Walmart's acquisition of well-run e-commerce sites expands the company's ability to sell more.Purchasing non-traditional stores expand the range of products available to clients who use online shopping applications.Approximately 70% of American houses are within 5 miles of a Wal-Mart store. Groceries, when connected with the ability to order and pick up items online, provide additional advantages for clients who make the majority of their purchases.Newly purchased e-commerce retailers will not only be able to attract new clients, but they should also have no adverse effect on sustainable customers.The internet choices are convenient for any clients that utilize the service.

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nicki minaj age and birthday

Answers

Answer:

age= 38 birthday= Dec 8 1982

Answer:

yes no

Explanation:

Today, you deposit $2,500 of cash in a savings account that earns 8.0% in annualized interest. One interest payment is received at the end of every year. You make no other deposits or withdrawals. In five years, the amount of interest on interest you have earned in your savings account is closest to:

Answers

Answer:

$1,172 in interest

Explanation:

To find the answer to this question, we use the future value of an investment formula:

FV = PV (1 + i)^n

Where:

FV = Future value of the investment

PV = Present value of the investment (in this case, the $2,500)

i = interest rate (in this case 8.0%)

n = number of compounding periods (in this case, 5 years)

We now plug the amounts into the formula:

FV = 2,500 (1 + 0.08)^5

FV = 2,500 (1.469)

FV = 3,672

So, after 5 years, the initial $2,500 will have transformed into $3,672. The difference between this two values is the interest earned.

3,672 - 2,500 = $1,172

After 5 years, you will have earned $1,172 in interest

Sheridan Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30% on selling price is considered normal for each product. Specific data with respect to each product follows: Product #1 Product #2 Historical cost $11 $21 Replacement cost 7 13 Estimated cost to dispose 8 10 Estimated selling price 22 35 In pricing its ending inventory using the lower-of-cost-or-market, what unit values, rounded to the nearest dollar, should Sheridan use for products #1 and #2, respectively?

Answers

Answer:

Sheridan Corporation

Value of Ending Inventory:

                                       Product #1    Product #2

Before the new LCM rule:

Ending Inventory                 $7                 $13

After the new LCM rule:

Ending Inventory              $ 11                 $21

Explanation:

a) Data and Calculations:

                                       Product #1    Product #2

Historical cost                      $11                $21

Replacement cost                  7                   13

Estimated cost to dispose     8                   10

Estimated selling price        22                  35

Net realizable value             14 (22 - 8)     25 (35 - 10)

Less profit margin (30%)       4.2                7.5

Normal historical cost           9.8               17.5

Method of pricing its ending inventory = lower-of-cost-or-market

                                       Product #1    Product #2

Historical cost                      $11                $21

Replacement cost                  7                   13

Net realizable value             14                  25

Before the new LCM rule:

Ending Inventory                   7                   13

After the new LCM rule:

Ending Inventory                 11                   21

The new LCM rule states that the measurement of the ending inventory is solely restricted to the lower of cost and net realizable value.

Which types of preferences will always result in an interior optimum for utility maximization (assuming income is greater than $0)

Answers

Multiple choice options

Perfect complements

Cobb Douglas

Perfect substitute

Concave IC

Quasi linear

Answer:

Perfect complements

Cobb Douglas

Explanation:

Perfect complements and Cobb Douglas will always result in interior optimum for utility maximization

When we talk of perfect competition, the consumer would always consume both goods and would do so in fixed proportions.

For cobb Douglas, the consumer spends a fixed part of income on the good. The part of income that is spent is dependent on the exponential power of goods it was spent on.

For perfect substitute and concave IC, any of one good is consumed

For quasi linear, first one good is consumed till some unit. After this unit is done with, if anything is left on income, the remaining income will be spent on other good. So at income level, there is corner solution and whereafter there will be interior solution.

1. The law of demand relates two variables: price and quantity demanded. A. What is the relationship between these variables

Answers

Answer:

A

Explanation:

When Uncle Sam receives his interest check from investments overseas, then the balance of payments would

Answers

Answer: record a positive entry in the current account.

Explanation:

The current account is used to denote how well a particular economy is doing. It is the addition of balance of trade, net current asset and the net income from abroad.

Therefore, when Uncle Sam receives his interest check from investments overseas, then the balance of payments would indicate a positive entry into the current account

What is the variance of returns of a portfolio that produced returns of 20%, 25%, and 30%, respectively

Answers

Answer:

16.7

Explanation:

Calculation for What is the variance of returns of the portfolio

First step is to calculate the mean

Mean = (20% + 25% + 30%) / 3

Mean =75% / 3

Mean = 25%

Now let calculate the variance of returns of the portfolio

Portfolio variance of returns = {(20 − 25)^2 + (25 − 25)^2 + (30 − 25)^2} / 3

Portfolio variance of returns=25+0+25/3

Portfolio variance of returns=50/3

Portfolio variance of returns= 16.7

Therefore the variance of returns of the portfolio will be 16.7

As a babysitter, what are three things you should consider from a business perspective?

Answers

Answer:

Explanation:

Reliability. You want a sitter who respects the babysitting job – and your time enough to show up on time, preparedness. Good sitters come to work with ideas on what to do while they're with your kids, such as games, crafts or other activities, Experience, Ability to take charge

Answer:

Ensuring Child Safety -- This is the most important responsibility, and it's always required. That's why it's number one! Make sure children are safe at home and while 'out and about. Parents expect that children will be under the watchful eye of the sitter at all times. Which gives you and opportunity to gain trust.  

Decision – making skills. While taking care of children there are going to be many situations where the child care worker must act quickly and make an appropriate judgment to fix the problem.

If overnight -- You may need to prepare or order dinner, help children with homework, run the bedtime routine which may include a bath, brushing their teeth, putting on their pajamas, and reading a bedtime story. Once the children are asleep, you can tidy up a bit then have some downtime

Hope this helps

Bye

In a production cost report using process costing, transferred-in costs are similar to: Conversion costs included in beginning inventory. Conversion costs transferred to the next process. Materials costs added at the end of the process. Materials costs added at the beginning of the process. Conversion costs added during the process.

Answers

Answer:

Materials costs added at the beginning of the process.

Explanation:

Process costing is a type of costing system that manufacture companies use when they produce high volumes of identical or homogeneous products. The production of these goods might include several different processes, but they are cumulative. In other words, the production batches accumulate costs during the whole process and at the end, the cost per unit is calculated after assigning overhead costs.

While designing a management support system, it's important to remember that executives do not care about _____.

Answers

Answer:

a. sales figures

Explanation:

In the case when the design would be made with regard to management support system so it would be significant to remeber that the executives should not care for the sales amount or figures as they do not play any kind of role in the management support system.

So the same would be relevant

Hence, the correct option is a.

Which of the following statements is TRUE? *
4 points
Home equity loans or lines of credit are not available to renters
Home equity loans or lines of credit are only available to people who have paid for their home in full
Home equity loans or lines of credit are illegal in most states
Home equity loans or lines of credit are only useful for funding home improvement projects

Answers

The TRUE statement about Home Equity Loans is A. Home equity loans or lines of credit are not available to renters.

What is a home equity loan?

A home equity loan is a line of credit, known as a HELOC, secured by an individual's homeownership which gives the individual a revolving credit line to use.

The homeowner can borrow up to 80% or more based on the home equity built up over the years.

Thus, the TRUE statement about Home Equity Loans is A. Home equity loans or lines of credit are not available to renters.

Learn more about the Home Equity Line of Credit at https://brainly.com/question/26479975

what is the effective interest rate of a simple discount note of 8000 at an ordinary bank discount rate of 11%, for 120 days?

Answers

Answer:

11.41%

Explanation:

Discount rate = 11%, M = 120 days = 3 month

Effective rate = [(1 + 11% / 3)^3] - 1

Effective rate = [(1 + 0.11/3)^3] - 1

Effective rate = [(1 +   0.0366667)^3] - 1

Effective rate = [(1.0366667)^3] - 1

Effective rate = 1.1140827371 - 1

Effective rate = 0.1140827371

Effective rate = 11.40827371%

Effective rate = 11.41%

(True) or (False)? The total amount of depreciation accumulated for an asset over its entire life will differ depending on the method of depreciation used.

Answers

Answer:

True

Explanation:

Let us illustrate this using the below hypothetical case:

Asset acquired-motor vehicle

useful life is 3 years

salvage value $20,000

cost of the asset=$100,000

depreciation methods:

straight-line method

double-declining balance method

depreciation under straight-line method=(cost-salvage value)/useful life

depreciation under straight-line method=($100,000-$20,000)/3=$26,666.67  

accumulated depreciation for 3 years=$26,666.67  *3=$80,000

double declining balance method:

double-declining rate=100%/useful life *2=100%/3*2=67%

2 means double

year 1 depreciation=$100,000*67%=$67,000

year 2 depreciation=($100,000-$67000)*67%=$22,110  

year 3 depreciation=($100,000-$67000-$22110)*67%=$7,296  

accumulated depreciation for 3 years=$67,000+$22,110+$7,296=$96,406  

$80,000 not equal to $96,406  

1. At what level does the supervisor fit in the organizational pyramid? Describe a major trend that is changing the role of the supervisor at that level.

Answers

Answer:

1. Supervisors fit in the middle level of the organization pyramid.

2. A major trend that is changing the role of the supervisor at that level is the concepts of mentoring, coaching, and staff training.  The supervisor's role is expanding to include these activities that will ensure process improvement, enforce adherence to organization's rules, and enable improved cross-functional relationships.

Explanation:

Primarily, supervisors are known to motivate employees, direct the activities of others, select the most effective communication channel, and resolve conflicts among team members.  However, the changing trend now views the supervisor as an educator, sponsor, coach, counselor, and director.  Therefore, the supervisor is expected to deplore all his skill-sets, including effective communication in combination with daily conflict resolution, transformational leadership, critical thinking, interpersonal relationship, time and priority management, and problem-solving skills.

(True) or (False)? The closing process takes place immediately before the preparation of the income statement. Group of answer choices (True) (False)

Answers

Answer: False

Explanation:

The closing process is the process that is fine when a particular accounting period ends and when the financial statement for the company have been prepared.

At the closing process, the balance in the temporary account of the company will be reset to zero. The statement in the question is false as the closing process takes place immediately after the income statement has been prepared and not before the income statement is prepared.

Pure expectations theory The pure expectations theory, or the expectations hypothesis, asserts that long-term interest rates can be used to estimate future short-term interest rates. Based on the pure expectations theory, is the following statement true or false? The pure expectations theory assumes that a one-year bond purchased today will have the same return as a one-year bond purchased five years from now. False True The yield on a one-year Treasury security is 5.8400%, and the two-year Treasury security has a 7.0080% yield. Assuming that the pure expectations theory is correct, what is the market’s estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations.) 10.3999% 6.9606% 8.1889% 9.3353% Recall that on a one-year Treasury security the yield is 5.8400% and 7.0080% on a two-year Treasury security. Suppose the one-year security does not have a maturity risk premium, but the two-year security does and it is 0.2%. What is the market’s estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations.) 8.8748% 6.6172% 7.7849% 9.8868% Suppose the yield on a two-year Treasury security is 5.83%, and the yield on a five-year Treasury security is 6.20%. Assuming that the pure expectations theory is correct, what is the market’s estimate of the three-year Treasury rate two years from now? (Note: Do not round your intermediate calculations.) 6.53% 6.45% 5.46% 6.69%

Answers

Answer:

False

6.9606

9.8868

Explanation:

Forward rates represent the expected future rate. This theory is known as pure expectation theory. The bond purchase today will not have the discount factor affect whereas the bond purchased five years from now will have different return from today. The five year value will need to be discounted in order to find the return on todays date.

The Institute of Management Accountants' Statement of Ethical Professional Practice for management accountants includes the elements of: Competence, confidentiality, independence, and objectivity. Competence, confidentiality, integrity, and credibility. Competence, accuracy, integrity, and independence. Competence, confidentiality, integrity, and relevance.

Answers

Answer: Competence, confidentiality, integrity, and credibility.

Explanation:

In the activities of management accountants professionals, the four standards of ethical conduct which the Institute of Management Accountants enacted are simply confidentiality, credibility, competence, and integrity.

This therefore shows that the right option is B.

g The low cost of labor in other countries around the globe is a factor that business must consider because they are impacted by:

Answers

Answer:

The low cost of labor in other countries around the globe is a factor that business must consider because they are impacted by:

the high cost of domestic labor.

Explanation:

An entity's ability to be globally competitive in the face of foreign manufacturers with low cost of labor is not helped by the high cost of domestic labor.  The cost of direct labor forms part of the computations for the cost of a product and its pricing.  Cheaper imports are more affordable to consumers than local products, thus causing consumers to prefer imports to domestic products.

A company issues 5,000 shares of $15 par common stock. As a result, the earnings per share of the company _____.

Answers

Answer:

c. decrease

Explanation:

Options "a. increases, b. remains unchanged, c. decreases, d. equals to $15"

Earnings per share = Net income available for common shareholders / Number of shares outstanding.

So with increase in number of shares outstanding, the earnings per share would decrease as net income would be spread over higher number of shares.  So in this case, if company issues further 5,000 shares, the number of shares outstanding would increase and thus the earnings per share would decrease.

Assume your gross pay per pay period is $3,000 and you are in the 28 percent tax bracket. Calculate your net pay and spendable income if you save $300 per pay period after paying income tax on $3,000.

Answers

Answer and Explanation:

The computation of the net pay and the spendable income is as follows;

Net pay = Gross pay × (1 - Tax rate)

= $3,000 × (1 - 0.28)

= $2,160

And, the spendable income is  

Spendable income = Net pay - Savings

= $2,160 - $300

= $1,860

Hence, it could be determined by applying the above formula

The same is to be considered

Compare and contrast between bonds issued with coupon rate and zero-coupon bonds

Answers

Answer:

Compare and Contrast

Both bonds have face values.Bond with coupon rate pays the interest whereas zero-coupon bond does not pay such interest periodically.Bond with coupon rate is issued on the market value whereas zero-coupon bond is issued on deep discount value.A Zero-coupon bond is more volatile than a bond with a coupon rate. Usually zero-coupon bond has a higher yield rate than a bond with a coupon rate.A zero-coupon bond may also help to save taxes whereas a bond with a coupon rate has tax consequences for the investor due to interest income.

Explanation:

Bond with a coupon rate

The bond issued with coupon rate has an interest rate which is used to calculate the interest payment or income. This bond is issued on the market value.

Zero-coupon Bond

The zero-coupon bond is a bond that does not have any interest and does not pay interest or receive interest income. This bond is issued at a deep discount value.

For a non-current asset to be classified as held-for-sale the asset must be: In saleable condition Converted to cash through use Highly possible to be sold Planned to be sold within two years

Answers

Answer:

The answer is it must be highly possible to be sold.

Explanation:

For a non current asset to be classified as held-for-sale, the following must be satisfied:

1. The asset must be available for immediate sale in its present state(condition) and location.

2. The asset's sale is expected to be completed within a year(12 months) as 'held for sale'

3. The sale of the asset must be highly probable(through management's commitment to the sale of the asset and the existence of active marketing for the asset)

Banks are financial intermediaries that: A. have customer deposits as its primary asset and loans to borrowers as their primary liability.

Answers

Answer:

False

Explanation:

Exactly the opposite is true: banks are financial intermediaries that have customer deposits as their primary liability, and customer loans as their primary asset.

The reason is that customer deposits can be withdrawn at any time (at least in theory), and the bank is obliged to give back the deposited money to the customer.

Loans, on the other hand, are assets, because they provide the bank with interset, and an asset is simply an economic resource that provides further economic gain to its owner.

Wright Company recently petitioned for bankruptcy and is now in the process of preparing a statement of affairs. The carrying values and estimated fair values of the assets of Wright Company are as follows: Carrying Value Fair Value Cash $10,000 $10,000 Accounts Receivable 60,000 30,000 Inventory 70,000 40,000 Land 90,000 75,000 Building (net) 200,000 150,000 Equipment (net) 80,000 25,000 Total $510,000 $330,000 Debts of Wright are as follows: Accounts Payable $40,000 Wages Payable (all have priority) 6,000 Taxes Payable 12,000 Notes Payable (secured by receivables and inventory) 90,000 Interest on Notes Payable 5,000 Bonds Payable (secured by land and buildings) 200,000 Interest on Bonds Payable 8,000 Total $361,000 A) Based on the preceding information, what is the total amount owed to general unsecured creditors

Answers

Answer:

the total amount owed to general unsecured creditors is $71,000

Explanation:

The computation of the total amount owed to general unsecured creditors is shown below:

= Account payable + wages payable + taxes payable + interest on note payable + interest on bond payable

= $40,000 + $6,000 + $12,000 + $5,000 + $8,000

= $71,000

hence, the total amount owed to general unsecured creditors is $71,000

The same is to be considered

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can someone help me with this? (click image) goods that can be bought in any quantity desired are called ? 5x4y=8minus, 5, x, minus, 4, y, equals, minus, 8Write a formula for f(x)f(x)f, left parenthesis, x, right parenthesis in terms of xxx. What is the approximate distance between the points (5, 4) and (2, 8)?A. 12.0 unitsB. 19.0 unitsC. 9.7 unitsD. 13.9 units Stem cells can become any type of cell in the human body, making them ideal for many types of therapies. One area of possible use is in brain cell transplants that could help people with spinal cord injuries and neurodegenerative diseases such as Parkinsons disease. Even though there is great potential for helping people, what is one ethical issue that could arise from the use of stem cells?A. the source of the stem cellsB. the cost of obtaining the stem cellsC. the method of storing the stem cellsD. the procedure for transplanting the stem cells in the figure below,two lines are parallel and m < 1 =83. Find all other angles There are a total of 722 students at dustins school A rectangular prism has a length of 7 units, a width of 12 units, and a height of 8 units.Enter your answers in the boxes to complete the formula.V=lwh Which question cannot be tested with a scientific investigation? pls pls pls pls pls helpppp meee What's 7/81 rounded to the nearest tenth? A sequential algorithm is broken into three stagesSequential Algorithm TimeDownload stage: 1 minuteSorting stage: 6 minutesUpload stage: 1 minuteA parallel version of the algorithm completes the sorting stage in parallel leading to a new set of timesParallel Algorithm TimeDownload stage: 1 minuteSorting stage: 2 minutesUpload stage: 1 minuteWhat is the speedup of the parallel solution? A. 6 minutes B. 4 minutes C. 2 D. 3 What is 2 fronts in world history? [tex]square root x+25 = 2[/tex] What does the kaiser advice the czar to do regarding the austro-serbian "incident"? The ratio of girls to boys in Mr. Freda's class is3:4. If Mr. Freda has 15 girls in his class, howmany students does Mr. Freda have altogetherin his class?Please will give brainiest to who ever answers Wie geht es dir heute? Ich hoffe du bist in sicherheit :) Find a formula for the general term an of the sequence, assuming that the pattern of the first few terms continues. (Assume that n begins with 1.) 1 2 , 1 4 , 1 6 , 1 8 , 1 10 , ... Which of these is a solution to the equation = x? Use inverse operations to solve.2/40 5/1611/4017/40 If you observe a Full Moon on Jan 12th, on what date would you observe the next New Moon? What date