Business, 18.03.2020 20:03 rk193140

Your firm is a U. K.-based importer of bicycles. You have placed an order with an Italian firm for €1,000,000 worth of bicycles. Payment (in euro) is due in 12 months.

Detail a strategy using futures contracts that will hedge your exchange rate risk. Have an estimate of how many contracts of what type and maturity.

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Answer from: Esmer1030

Complete question:

Your firm is a U.K.-based importer of bicycles. You have placed an order with an Italian firm for €1,000,000 worth of bicycles. Payment (in euro) is due in 12 months. Detail a strategy using futures contracts that will hedge your exchange rate risk. Have an estimate of how many contracts of what type and maturity

A. Go short 100 12-month euro futures contracts; and short 80 12-month pound futures contracts.

B. Go long 100 12-month euro futures contracts; and long 80 12-month pound futures contracts.

C.Go long 100 12-month euro futures contracts; and short 80 12-month pound futures contracts.

D. Go short 100 12-month euro futures contracts; and long 80 12-month pound futures contracts.E. None of the above

Go short 100 , 12-month euro futures contracts; and long 80, 12-month pound futures contracts. Option c is correct.

Explanation:

Buy €1m (a long position) forward using futures contracts, at the 12-month forward rate of $1.60 per €1 pay

$1,600,000 = €1,000,000 ×$1.60/€1.

At the 12-month forward rate of $2/≤this is worth ≤800,000.

Go short pound futures contracts.

so , Go long 100 12-month euro futures contracts; and short 80 12-month pound futures contracts.

Answer from: Quest

It depends on what the venn diagram is over

Answer from: Quest

Via: "if you are found to be supplying or dealing drugs, the punishment is likely to be tough. supplying drugs doesn’t just apply to dealers. if police suspect that you intend to share drugs with your friends, this is still considered to be supplying.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are:

- up to life in prison or an unlimited fine (or both) for a class a drug- up to 14 years in prison or an unlimited fine (or both) for a class b or class c drug."sorry if this was a school question, you didnt supply options so i assumed it was a personal question, which if it is, reconsider selling or having possesion of any drugs at all. i wish you the best!

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