Explain negotiated a non-deliverable forward contract, Operation Management

Assignment Help:

Johnson, Inc., a U.S.-based MNC, will need 10 million Thai baht on August 1. It is now May 1. Johnson has negotiated a non-deliverable forward contract with its bank. The reference rate is the baht's closing exchange rate (in $) quoted by Thailand's central bank in 90 days. The baht's spot rate today is $.02. If the rate quoted by Thailand's central bank on August 1 is $.022, Johnson will ________ $__________.

A) pay; 20,000

B) be paid; 20,000

C) pay; 2,000

D) be paid; 2,000

E) none of the above


Related Discussions:- Explain negotiated a non-deliverable forward contract

Edict - types of managerial tactic, Edict - Types of Managerial Tactic ...

Edict - Types of Managerial Tactic Managers use an edict to direct change. The change is released as an order and the expected behaviour and performance is assumed. There are

Advantages of a fixed position layout, Advantages of a Fixed Position Layou...

Advantages of a Fixed Position Layout Men and machines can be used for wide variety of operations producing different products. The investment on layout is very

Explain effectiveness of the changes made in the us, Evaluate the effective...

Evaluate the effectiveness of the changes made in the US Air Force Academy after the 2005 religious intolerance complaints

Explain computer criminals become more innovative, Identify potential ethic...

Identify potential ethical challenges that may be faced by security professionals as technology advances, applications become more mobile, and computer criminals become more innova

Explain recreation collects data on the number of cars, A state department ...

A state department of tourism and recreation collects data on the number of cars with out-of-state license plates in a state park. (The group's position is that more out-of-state p

Activities of operation manager in operation management, Responsibilities o...

Responsibilities of Operations Managers in Operation Management The responsibilities of operations managers  1. Understand and participate in setting business strategy

Explain before formalizing the foreign relationships, Many entrepreneurial ...

Many entrepreneurial organizations have established partnerships in other countries (i.e., Toyota in the United States, Nike in Thailand, etc.). What do entrepreneurial organizatio

Sequence problem, how to calculate idletime of each row

how to calculate idletime of each row

Discuss involvement in organizational decision-making, Discuss the impact o...

Discuss the impact of involving your employees in decision-making. What are the pros and cons? Should employees be involved in critical organizational decisions? Why or why not? Pr

Explain compensation as a motivator of behavior, 1. Does your company's com...

1. Does your company's compensation plans help to attract and retain people with the right skills, knowledge and motivation to help the company succeed? Explain.Company;NYC Dept. f

Write Your Message!

Captcha
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