Business, 07.05.2020 02:57 ERIKALYNN092502
Dow Chemical has sold SFr 25 million in chemicals to Ciba-Geigy. Payment is due in 180 days.
Spot rate: $0.7957/SFr
180-day forward rate: $0.8095/SFr
180-day U. S. dollar interest rate (annualized): 5%
180-day Swiss franc interest rate (annualized): 2%
180-day call option at $0.80/SFr: 2% premium
180-day put option at $0.80/SFr: 1% premium
a. What is the hedged value of Dow’s receivable using the forward market hedge?
b. Explain how Dow can use the money market hedge?
c. Explain the use of currency options to hedge its receivable?
Answers: 2
Business, 22.06.2019 02:20
The following information is available for jase company: market price per share of common stock $25.00 earnings per share on common stock $1.25 which of the following statements is correct? a. the price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of the year. b. the market price per share and the earnings per share are not statistically related to each other. c. the price-earnings ratio is 5% and a share of common stock was selling for 5% more than the amount of earnings per share at the end of the year. d. the price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of the year.
Answers: 1
Business, 22.06.2019 11:00
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Answers: 3
Business, 22.06.2019 12:20
Over the past decade, brands that were once available only to the wealthy have created more affordable product extensions, giving a far broader range of consumers a taste of the good life. jaguar, for instance, launched its x-type sedan, which starts at $30,000 and is meant for the "almost rich" consumer who aspires to live in luxury. by marketing to people who desire a luxurious lifestyle, jaguar is using:
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Business, 23.06.2019 07:00
An employer takes a deduction from your paycheck for federal taxes. where does this money go? -the money is sent to the federal government to pay for goods and services for the community. -the money is sent to the mayor. -the money is sent to the federal government and deposited in a retirement account. -the money is sent to the social security fund.
Answers: 3
Dow Chemical has sold SFr 25 million in chemicals to Ciba-Geigy. Payment is due in 180 days.
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