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Author Archives: Anonymous

In 90 days, Kansas City Corp. expects to receive 460,000 Can…

In 90 days, Kansas City Corp. expects to receive 460,000 Canadian dollars (C$) from an outstanding account receivable. The company finds a 90-day call option with an exercise price of $0.80 and a premium of $0.11 as well as a 90-day put option with an exercise price of $0.77 and a premium of $0.07. Kansas City Corp. wants to use options to hedge. If the spot rate in 90 days is $0.75, what is the net amount received (including the option premium) using the currency option hedge?

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Choose one of the following questions. Answer in a well-deve…

Choose one of the following questions. Answer in a well-developed paragraph of approximately 15–25 sentences with specific references to the text. Write the question number next to your answer. G.K. Chesterton’s play Magic includes the following statement spoken by the conjurer to Reverend Smith: “I want you to be martyred. I want you to bear witness to your own creed. I say these things are supernatural. I say this was done by a spirit. The Doctor does not believe me. He is an agnostic; and he knows everything. The Duke does not believe me; he cannot believe anything so plain as a miracle. But what the devil are you for, if you don’t believe in a miracle? What does your coat mean, if it doesn’t mean that there is such a thing as the supernatural? What does your cursed collar mean if it doesn’t mean that there is such a thing as a spirit?” What does the conjurer mean? How does this quote relate to the play’s main point? Choose one of the following readings: Albert Camus’ “The Guest,” Hristo Botev’s “To My First Love,” or Gabriel Garcia Marquez’s “Death Constant Beyond Love.”Identify the author and title of the reading. Explain one major theme in the work, such as freedom, love, betrayal, duty, or the limits of human control. How does the author develop this theme through setting, conflict, or character? Identify the author and reading from which the following quote is taken. Explain the significance of time in the reading. “You don’t look at your watch again, that useless object tediously measuring time in accordance with human vanity, those little hands marking out the long hours that were invented to disguise the real passage of time which races with a mortal and insolent swiftness no clock could ever measure. A life, a century, fifty years: you can’t imagine those lying measurements any longer, you can’t hold that bodiless dust within your hands.” Which reading from this semester did you enjoy most, and which did you enjoy least? Explain your reasons clearly, referring to themes, characters, ideas, difficulty level, or writing style.

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Photodegradable plastics can breakdown in a landfill.

Photodegradable plastics can breakdown in a landfill.

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Assume that Cliff Co. will receive SF800,000 in 90 days. Tod…

Assume that Cliff Co. will receive SF800,000 in 90 days. Today’s spot rate of the Swiss franc is $0.58, and the 90-day forward rate is $0.595. Cliff has developed the following probability distribution for the spot rate in 90 days:Possible Spot Rate in 90 DaysProbability$0.554%$0.5619%$0.5930%$0.6121%$0.6326%The probability that the forward hedge will result in more dollars received than not hedging is:

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Rowenta Co. has a unique opportunity to invest in a two-year…

Rowenta Co. has a unique opportunity to invest in a two-year project in Australia. The project is expected to generate 2,300,000 Australian dollars (A$) in the first year and A$4,300,000 in the second. Rowenta would have to invest $320,000 in the project. Rowenta has determined that the cost of capital for similar projects is 23.8 percent. What is the net present value of this project if the spot rate of the Australian dollar for the two years is forecasted to be $0.64 and $0.71, respectively?

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Countries may welcome direct foreign investment if the DFI i…

Countries may welcome direct foreign investment if the DFI is viewed as representing:1) new employment opportunities locally2) increased competition for local firms

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Which of the following statements are correct?1) A firm with…

Which of the following statements are correct?1) A firm with an account receivable denominated in British pounds will have a future outflow of British pounds.2) To create a situation in which a firm will have an inflow of Moroccan dirham, the firm would want to invest in Morocco.

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ZuHone Co. will receive SF250,000 in 360 days. Assume the fo…

ZuHone Co. will receive SF250,000 in 360 days. Assume the following interest rates: U.S.Switzerland360-day borrowing rate5.9%4.9%360-day deposit rate5.5%4.5%The forward rate of the Swiss franc is $0.54 and the spot rate of the Swiss franc is $0.53. If ZuHone Co. uses a money market hedge, it will receive ____ in 360 days.

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Chemical processing is a way of__________ hazardous waste fo…

Chemical processing is a way of__________ hazardous waste for safe disposal.

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Suppose Ingyu, Inc. will receive C$780,000 in 180 days. The…

Suppose Ingyu, Inc. will receive C$780,000 in 180 days. The 180-day forward rate in the Canadian dollar is $1.16. If Ingyu uses a forward hedge, it will:

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