exchange rate (indirect), and invest this “w” amount of pesos in the Mexican bond market have “w × (1 + YMEX)” pesos in one year, use the forward exchange rate (indirect) convert these pesos into dollar. In addition, the two holding period return should be equal according to the interest rate parity (Wharton.edu, ND). (1 + Yus) = Spot exchange rate× (1 + Ymex) × (1 / Forward exchange rate) (1 + Yus) = 9.5000 × (1 + 0.065) × (1 / 9.8707) (1 + Yus) = 9.5000 × 1.065 × 0.10131 (1 + Yus) = 1.0250 Yus
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Introduction Production began in 2003, but discoveries 1961-1967. Production at Pande-Temane 183 MGJ per year Basins: * Mozambique basin * Rovuma basin: 29,500 km square Recoverable reserves * 32-65 tcf * Discovered in 2 years (2010-2012) in Area 1 Gas in Place * 62 tcf Monetization 50 MMtpa- 2030 First two trains- 10 MMtpa- 2018 $15 billion MOZ GDP $12.8 billion 2011- $7 billion p annum in revenues | 82pct Corruption Corruption decreases when: * a bureaucrat’s
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ACC 401 WEEK 08 QUIZ A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=week-08-quiz Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION ACC 401 Week 8 Quiz, ACC 401 Week 8 Quiz – Strayer Chapter 11 International Financial Reporting Standards Multiple Choice—Conceptual 1. The goals of the International Accounting Standards Committee include all of the following except a. To improve international accounting. b. To formulate a single
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current bid rate of $1.624, this is equivalent to $232,000 (142,857.14 x $1.624). 4. Calculate the 30-day, 90-day, and 180-day forward discounts for the British pound. Answer. Here are the relevant rates for the pound: Spot: £1 = $1.8220 30-day forward: £1 = $1.8180 90-day forward: £1 = $1.8086 180-day forward: £1 = $1.7949 The 30-day forward discount is: [($1.8180 -
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What factor do you think is more threatening to Banbury’s profitability, cotton prices or the rising value of the Rupee? An increase is cotton prices will impact the firm’s overall profitability as it would increase COGS, decrease operating income, and net income (all else equal). Since cotton is a globally traded commodity, this change will also impact all competition; it is likely that all competitors within the market will have to increase their prices, which could slow demand and increase
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small businesses. There is only one supplier of the brand of tablets you would like to stock in your store, and that firm is located in Mexico. You have researched the current spot and forward rates between the U.S. and Mexico, as indicated in Table-1: TABLE-1 Spot Rate 30-Day Forward 90-Day Forward 180-Day Forward U.S. Dollar/Peso 1.7851 1.7052 1.8051 1.7555 Peso/U.S. Dollar ? ? ? ? Questions: 1. Complete the Peso/ U.S. Dollar row in Table-1 and explain your methodology. 2. If you
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Jaime has just entered into a forward contract to buy 10,000 ounces of silver in six-months. a) What is the present value of the storage cost? b) What are the six-month forward price and the value of Jaime’s forward contract? c) Three months later the spot price of silver is 27.50 and the risk-free rate of interest is still 10 percent per annum with continuous compounding for all maturities. What is the value of Jaime’s forward contract? d) Explain why the forward price of silver can be calculated
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Risk for Tiffany before agreement Before this agreement Mitsukoshi acted as a principal retailer of Tiffany products in Japan, purchasing selected goods from Tiffany- Japan on a wholesale basis. Since the wholesale transactions were denominated entirely in dollars, the yen/dollar exchange rate fluctuations had little impact on Tiffany’s cash flows. This risk was completely borne by Mitsukoshi as yen/dollar rate fluctuated in the time between the purchasing of inventory and cash settlement So Tiffany
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Chapter 11: multinational accounting: foreign currency transactions and financial instruments L.O.11-1: Understand how to make calculations using foreign currency exchange rates The accounting issues * Foreign currency transactions of a U.S. company include sales, purchases, and other transactions giving rise to a transfer of foreign currency or the recording of receivables or payables that are denominated in a foreign currency. * Translation is the process of restating foreign currency
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lasted between the years of 1958 and 1961, where millions of peasants and industrial worker died due to a severe lack of food. Most historians argue that the scale of the famine was due to the agricultural reforms introduced by Mao in the Great Leap Forward, but Mao blamed other factors. Collectivisation involved the peasants joining together to farm collectively rather than individually. They then had to share the food produced with the rest of the community, as opposed to just their families, which
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