subject
Business, 31.10.2019 04:31 knj281

Calandra panagakos works for cibc currency funds in toronto. calandra is something of a contrarian -- as opposed to most of the forecasts, she believes the canadian dollar (c$) will appreciate versus the u. s. dollar over the coming 90 days. the current spot rate is $0.6750/c$. calandra may choose between the following options on the canadian dollar: optionstrike pricepremiumput on c$$0.7000$0.3/s$call on c$$0.7000$0.00049/s$a. should calandra buy a put on canadian dollars or a call on canadian dollars? b. what is calandra's breakeven price on the option purchased in part (a)? c. using your answer from part (a), what is calandra's gross profit and net profit (including premium) if the spot rate at the end of 90 days is indeed $0.7600? d. using your answer from part (a), what is calandra's gross profit and net profit (including premium) if the spot rate at the end of 90 days is $0.8250?

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 21:00
Label each scenario with the term that best describes it. use the midpoint method when applicable. marcel duchamp was a famous artist prior to his death, and was known for his dada artwork, including works such as "soft toilet". all of his original sculptures and paintings go on sale. paul owns a tim horton's, a famous donut and coffee franchise. he is willing to sell as many maple glazed donuts as customers want at a price of $1.00 each, but he refuses to sell any donuts for any price lower than $1.00 . the price of facial tissues rises from $2.85 per box to $3.15 . as a result, p& g increases production from 15 million boxes to 25 million boxes of facial tissue. with the school semester starting for both high school and college, papermate chooses to increase production of pens from 38 million to 42 million after global prices of writing instruments increase from $1.90 a package to $2.10 a package. bright ideas increases its production of lightbulbs by 15% after a 400% increase in the price of fluorescent bulbs.labels: elastic supply; perfectly inelastic supply; perfectly elastic supply; inelastic supply; unit-elastic supply.
Answers: 2
question
Business, 22.06.2019 08:40
Which of the following is not a characteristic of enterprise applications that cause challenges in implementation? a. they introduce "switching costs," making the firm dependent on the vendor. b. they cause integration difficulties as every vendor uses different data and processes. c. they are complex and time consuming to implement. d. they support "best practices" for each business process and function. e. they require sweeping changes to business processes to work with the software.
Answers: 1
question
Business, 22.06.2019 21:10
Upon completion of the northwest-corner rule, which source-destination cell is guaranteed to be occupied? a. top-leftb. the cell with the lowest shipping costc. bottom-leftd. top-righte. bottom-right
Answers: 1
question
Business, 22.06.2019 21:10
Krier industries has just completed its sales forecasts and its marketing department estimates that the company will sell 43,800 units during the upcoming year. in the past, management has maintained inventories of finished goods at approximately 3 months' sales. however, the estimated inventory at the start of the year of the budget period is only 7,300 units. sales occur evenly throughout the year. what is the estimated production level (units) for the first month of the upcoming budget year?
Answers: 3
You know the right answer?
Calandra panagakos works for cibc currency funds in toronto. calandra is something of a contrarian -...
Questions
question
Mathematics, 14.10.2019 09:30
question
Mathematics, 14.10.2019 09:30
Questions on the website: 13722361