Locate today value of the Cedi

Assignment Help Financial Accounting
Reference no: EM132975864

Question - Hopkins Chocolate Company buys green cocoa beans that are processed into consumer products. Cocoa beans are currently selling for $2,000 United States Dollars (USD) per metric ton. Hopkins buys 100 tons at a time from Abamo Chocolate in Ghana, Africa. Normal purchase procedures stipulate that the purchase contract is denominated in Ghanaian Cedi and payment in Cedi is due 90 days after purchase.

Recently, the treasurer of Hopkins became concerned that the U.S. Dollar would change in value against the Ghanaian Cedi. Consequently, Hopkins bought a 90-day option.

Hopkins bought a 90-day option to exchange $200,000 USD for 900,000 Cedi. They paid $8,000 USD for the option and today it has been 90 days. Locate today's value of the Cedi at XE.com's Live Exchange Rates and calculate how much Hopkins won or lost by purchasing the 90-day option. Explain your calculations in detail.

Reference no: EM132975864

Questions Cloud

Explain primary reasons project management causes cultural : Explain the primary reasons project management causes a cultural change. Describe the impact of that cultural change on integrative information technology.
What is role of the CEO in the corporate strategy process : Question - What is the role of the CEO in the corporate strategy process? How has that changed in the age of "the new disrupters"
What were any dissapointments : How did this Topics help prepare you for future endeavors, both academically and in the workplace? What was the best and worst parts of your overall experience?
Research an article related to access controls : Research a unique news story or article related to Access controls. Post a summary of what you learned to the discussion thread.
Locate today value of the Cedi : Hopkins bought a 90-day option to exchange $200,000 USD for 900,000 Cedi. Locate today's value of the Cedi at XE.com's Live Exchange Rates
How to make an industry standard test report to test : How to make an industry standard test report to test that your program works correctly. For the assignment simply write a short paragraph of any activities
What programming languages are vulnerable to type of attack : What programming languages are vulnerable to this type of attack. What methods can me employed to prevent a security breach?
How many tokens will be earned for eight sales : A certain business has implemented a new incentive plan whereby an employee earns tokens for every sale they make. How many tokens will earned for eight sales
Create a draft risk management plan detailing : Create a draft risk management plan detailing the information above. Format the plan similar to a professional business report and cite any sources you used.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

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