What is the traders profit

Assignment Help Business Economics
Reference no: EM13978876

A trader enters into a forward contract to short 100 million yen. The current spot rate is $0.0080/yen. The forward exchange rate is $0.0085/yen. Suppose at maturity, the spot exchange rate is $0.0080/yen. What is the trader's profit?

Reference no: EM13978876

Questions Cloud

How might being a minority influence your behavior at work : The purpose of this assignment is to provide you with an experience where you are in the minority, preferably going further where you are the only one of your "kind" in a given situation. How might being a minority influence your behavior at work
What is evsi : For $10,000 Lark can hire a consultant who will predict who will win the trial. The consultant is correct 90% of the time. Should she hire the consultant? (Assume she is risk neutral). What is EVSI?
What are specific people risks for a manufacturing company : What are specific people risks for a manufacturing company? What are specific financial risks for a manufacturing company? What are specific operational risks for a manufacturing company
Compute the corrected operating income : After the end of 2014, the company discovered that an error had resulted in an $18,000 understatement of the 2013 ending inventory. Compute the corrected operating income for 2013 and 2014
What is the traders profit : A trader enters into a forward contract to short 100 million yen. The current spot rate is $0.0080/yen. The forward exchange rate is $0.0085/yen. Suppose at maturity, the spot exchange rate is $0.0080/yen. What is the trader's profit?
What is the operating cash flow : Ridiculousness, Inc., has sales of $48,000, costs of $21,200, depreciation expense of $1,900, and interest expense of $1,200. If the tax rate is 35 percent, what is the operating cash flow, or OCF?
Prepare the introduction section : Using the provided template for the Project Management Plan, prepare the Introduction section. This section will include a statement of the problem and its impact on the organization
What is the value three years from now : A 4-year annuity of eight $8,200 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. a) If the discount rate is 14 percent compounded monthly, what is the value of this annuity five years from now? If th..
What is your total dollar return from this investment : You’ve just opened a margin account with $15,000 at your local brokerage firm. You instruct your broker to purchase 800 shares of Landon Golf stock, which currently sells for $77 per share. Suppose the call money rate is 6.5 percent and your broker c..

Reviews

Write a Review

 

Business Economics Questions & Answers

  If korean exports to the united states decline by 15

if korean exports to the united states decline by 15 billion by how much will cumulative korean spending drop if their

  Obsolete due to tightened product quality standards

A machine produces 1000 units of product per day in an existing manufacturing operation. The machine has become obsolete due to tightened product quality standards. Replacement machine A will cost $20,000 and will produce the needed 1000 units of pro..

  Using the straight-line method

An asset is purchased for $745,000 today. It will have a $76,000 salvage value after 5 years of use. Using the straight-line (SLN) method, calculate the depreciation charge for year 2 and the book value at the end of year 2.

  Savings rate needed to achieve golden rule level of capital

Assume the U.S. government implements a policy that achieves the savings rate needed to achieve the golden rule level of capital.

  Increase overall employment and income

George and Ellen operate a business and make a profit. Is this good or bad? Would it have been better if they had made a loss? Explain. How do people earn income? If you purse a career and become incredibly rich, have you done so at the expense of ot..

  Q brit oxygen whose global sales are generally dollar

q. brit oxygen whose global sales are generally dollar denominated needs to borrow 50000000 for working capital also

  Theory of purchasing power parity predict

Illustrate what does the theory of purchasing power parity predict will happen to the value of Japanese yen in item of dollars

  Gdp per capita ppp current international for sub-saharan

gdp per capita ppp current international for sub-saharan africa and uganda between the years 1980 and 2010.1. for

  What equivalent to a markup on price markup on cost

Is there a formula or vice versa a 50% markup on cost is equivalent to a markup on price of what. An answer of 50% for both just seems too easy.

  Elasticity of demand for stock

Price elasticity of demand for stock is 1.5. This means that foe every 10% increase in stock prices, the quantity demanded will decline by 15 %. Does this make sense? explain.

  Business cycle in government and private sector decisions

In this discussion, you will explain the role of the business cycle in government and private sector decisions. Data on GDP and economic growth are considered lagging indicators because they report information on what is already known. Should wages a..

  Federal reserve system control the nations money supply

Should the Federal Reserve System control the nation's money supply? Defend your position using economic principles.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd