User Account

All Pages

Determine the outcome of a future hedge

Assignment Help Financial Accounting
Reference no: EM132976658

Question - On January 2 of a particular year, an American Firm decided to close out its account at a Canadian bank on February 28. The firm is expected to have 5 million Canadian dollars in the account at the time of withdrawal. It would convert the funds to U.S. Dollars and transfer them to a New York bank. The relevant spot exchange rate was $0.7564. The March Canadian dollar futures contract priced at $0.7541. Determine the outcome of a future hedge if on February 28 the spot rate was $0.7207 and the future rate was).7220. All prices are in US Dollars per Canadian dollar. The Canadian dollar futures contract covers CD 1, 00,000.

Reference no: EM132976658

Questions Cloud

Journalize these payments as one journal entry : Journalize these payments as one journal entry. Payment of employee wages for the last half of August, $10,983. Payment to the landlord for August rent, $860
Compute the expected income for the coming year : Mr. Dackers informs you that the only variables costs are the cost of sales and P2 per unit selling costs. Compute the expected income for the coming year
What is mary jarvis federal tax liability : What is Mary's federal tax liability? Mary Jarvis is a single individual who is working on filing her tax return for the previous year.
Which is not increase in figuring s corporation shareholder : Which is not an increase in figuring an S corporation shareholder's stock basis? shareholder's share of the corporation's annual income
Determine the outcome of a future hedge : The relevant spot exchange rate was $0.7564. The March Canadian dollar futures contract priced at $0.7541. Determine the outcome of a future hedge
Explain which is not an advantage of a c corporation : Explain which is not an advantage of a C corporation? the corporation only pays taxes on dividends and distributions. it is easier to raise capital by selling
Determine new prices of the bond after three years : Term to maturity for these bonds is 20 years. After 2 years, yield to maturity decreases by 1%. Determine new prices of the bond after 3 years
Make the journal entries in the records of vivo ltd : Make the journal entries in the records of Vivo Ltd for the year ended 30 June 2019 in relation to its investment in the joint venture, Drum Ltd
Summarize the purpose of the tax cuts and jobs act : Summarize the purpose of the Tax Cuts and Jobs Act and explain the main objective(s) for implementation. Examine three significant changes brought forth

Reviews

Write a Review

Financial Accounting Questions & Answers

  What the team safety margin in sales dollars would be

What the team's safety margin in sales dollars would be? Fixed costs, including player salaries and operating expenses, total $1.2 million for the season.

  Prepare the property, plant, and equipment section

Your analysis of the fixed asset accounts at the end of 2010 for the Moen Corporation reveals the following information:

  Calculate the manufacturer''s dollar margin per unit

Within a given distribution channel, the following information is available concerning trade margins and costs. A wholesaler has a unit selling price of $257 and a unit cost of $123. The retailer requires a 29% markup on selling price. Calculate the ..

  Compute the average useful life of PPE assets

Monster Equipment has obtained the following data from its accounting records: Accumulated depreciation $340,000. Compute the average useful life of PPE assets

  Budget for planning and operation within business

There are many advantages to using a budget for planning and operation within a business. Share what you believe are the three main advantages for using a budget. Select one of these advantages and present an example, as well as how you feel that adv..

  Define comprehensive income

Define comprehensive income and explain how it differs from the net income shown in the Profit and Loss account. Show the accounting entries of the payment.

  Provide journal entries for disposal of the machinery

Make and Provide the necessary journal entries for the disposal of the machinery and the acquisition of the motor vehicle on 1 July 2019.

  Calculate the depreciation under the double declining method

Calculate the depreciation under the double declining method and calculate the depreciation under the units of production method.

  Compute the npv and the irr for each investment

Compute the NPV and the IRR for each investment. Explain why the project with the larger NPV is the correct choice for the company.

  Shipping documents describing the articles sold

During your examination of the accounts receivable of Hope Ranch, a new client, you notice that one account is much larger than the rest, and you therefore decide to examine the evidence supporting this customer's account. Computer printout from acco..

  What is the value of the forward contract at december

What is the value of the forward contract at December 31? Ward Enterprises sells aircraft seat cushions to most major airplane manufacturers.

  Journalise transactions for hamilton during financial year

Journalise the transactions for Hamilton during the 2021 financial year. Total credit sales were $80000; 3% of sales were estimated to be uncollectable.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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