User Account

All Pages

How can the manufacturer use a futures contract

Assignment Help Accounting Basics
Reference no: EM133105983

Question - Risk management tools are used to protect businesses and mitigate this risk. A futures contract is one of various derivative instruments often used to minimize risk related to global currency fluctuations.

An airplane manufacturer in the United States is building a new type of 747 airplane, and an airline in Spain is first in line to buy the new model.

They negotiate a price of $100 million in January, and the plane should be delivered by September. In this scenario, how can the manufacturer use a Futures Contract to minimize its currency risk exposure?

Reference no: EM133105983

Questions Cloud

Ethics issue-disaster planning : As the world progresses into the twenty-first century, one aspect of health care - disaster planning - requires urgent attention.
Journalize the issuance of the stock : On May 10, Concord Corporation issues 3,200 shares of $10 par value common stock for cash at $22 per share. Journalize the issuance of the stock
Database and Entity-Relation Diagram Design : Database and Entity-Relation (ER) Diagram Design - Design a conceptual model of the database and draw an ER diagram that can capture the information needed
What is the unit cost per finished unit of job : X Corp incurred the following cost for Job 101 for manufacture of 200 units: Direct materials of 660; What is the unit cost per finished unit of Job
How can the manufacturer use a futures contract : They negotiate a price of $100 million in January, and the plane should be delivered by September. How can the manufacturer use a Futures Contract
Standards and parameters that health care professionals : Define the standards and parameters that health care professionals must have in order to work within their scope of practice.
What is the immediate issue facing domino : What does the company need to say publicly in response to the viral employee video, the huge online following and the growing media coverage?
Explain employment laws : Explain Employment laws and their importance as a business.
Advantages-disadvantages of needs assessment methods : Compare the advantages and disadvantages of the needs assessment methods:

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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