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

Explain some of the key decisions its management, Describe some of the key ...

Describe some of the key decisions its management has faced within the past year or two. Identify an ethical issue the organization either faces or has faced in the past. If it has

Describe how companies could benefit from increasing, Here Create one innov...

Here Create one innovative approach that is not discussed in the textbook for increasing the amount of innovation within a large company. Describe this approach in detail and expla

Determine the effect of facility layout of an organisation, What effect doe...

What effect does your organisation's facility layout have on the following (where appropriate): inter-process movement; health & safety; congestion; resource utilisation; work-in-p

Process flow and layouts, process flow and layout flows are at the core of ...

process flow and layout flows are at the core of lean manufacturing, do you agree or disagree?

Define skills needed in order to succeed as systems analyst, Discuss the ty...

Discuss the types of skills needed in order to succeed as a systems analyst

Explain what challenges or barriers may happen, You are part of a group of ...

You are part of a group of newly hired team superintendents with Riordan Manufacturing. Your group was hired to lead new teams and begin production of the newly designed CardiCare

Calculate the expected value, C and S Metal company produces stainless stee...

C and S Metal company produces stainless steel pots and pans. C and S can pursue either of two distribution plans for the coming year. The firm can either produce pots and pans for

Explain why do firms engage in fdi, Why do firms engage in FDI when alterna...

Why do firms engage in FDI when alternatives such as exporting and licensing are available? How do location-specific advantages influence organisational decisions on FDI?

Make a product structure for heather, Operations Mgmt. 10th edition Hiezer/...

Operations Mgmt. 10th edition Hiezer/Render Heather Adams, production manager for a Colorado exercise equipment manufacturer, needs to schedule an order for 50 UltimaSteppers, whic

Approaches for handling customer complaints and listening to, explain appro...

explain approaches for handling customer complaints and listening to customers

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