Consider a simple traction whereby an investor purchases 20 million worth of US dollars spot from your

Fantastic news! We've Found the answer you've been seeking!

Question:

Consider a simple traction whereby an investor purchases 20 million worth of US dollars spot from your bank. The current rate is GHS5.7905/US$,for settlement in two business days.

a. how will you describe this sort of investment?

b. how much in GHS will your bank have to deliver in two business days in exchange for receiving US$ 20 million?

c. identify four kinds of risk that can arise from this transaction?

d. Using Ghana as the home country, what type of quotation is this?

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

See More Books

Posted Date: Nov 27, 2023 12:45 AM

See More Questions

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Suppose an economy is at full-employment equilibrium at a GDP of $25 billion and investment declines by $4 billion. According to Keynes, this economy will: OA. Quickly self adjust back to full...
S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on...
What is the estimated visual field for this subject after 20 years of follow-up? Provide a 95% confidence interval associated with this estimate. Ophthalmology Retinitis pigmentosa (RP) is a...
Presented below are selected financial statement data for three global energy firms: Required 1. Compare the three firms in terms of their size and their financing strategy. 2. Evaluate the...
Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data (in millions of dollars) for the year ended January 31, 2009, follow Instructions(a) Compute working...
The Boyd Corporation has annual credit sales of $1,600,000. Current annual expenses for the collection department are $35,000, bad debt losses are 1.5%, and DSO is 30 days. The firm is considering...
Determine the reactions at the roller B, the rocker C, and where the beam contacts the smooth plane at A. Neglect the thickness of the beam. 3 5 + A 4 m 500 N B -2 m- 800 N 60 -6 m- C
A $700,000, ten-year, 9% bond issue was sold to yield 10% interest payable annually. Actuarial information for 10 periods is as follows: 9% 10% Present value of 1 0.42241 0.38554 Present value of an...
Consider the project of developing an optical simulator which has 6 different tasks. The tasks and task times are provided below in the following table: Activity A. Optical Design B. System...
a) 1) - the graph showing the annual financial performance of a business company known as SIME DARBY BERHAD. By using the following Profit Margin data (% - blue line) in Figure 2, Construct the...
The current price of crude oil is $32.00 per barrel. Forward prices for 3, 6, 9, and 12 months are $31.37, 830.75, $30.14, and $29.54. Assuming a 2% continuously-compounded annual risk-free rate. (i)...
Assume the investor places portfolio weight on asset X, and on asset Y. Assuming that the return to the two assets are perfectly positively correlated, calculate the expected return and the standard...
MR Hank owns and operates a pet store. She contributed 5 , 0 0 0 bags of cat and dog food from her inventory to the local Society for Prevention of Cruelty to Animals. Her cost basis in the pet food...
1. Draw the fully labelled and implementable Crow's Foot notation ERD to support the following business operations given below in the case study. 2. Identify all entities with fully defined PKs and...
A heat engine has a heat input of 3 Ã 104 Btu/h and a thermal efficiency of 40 percent. Calculate the power it will produce, in hp. Source 3 x 10 Btu/h 40% HE Sink
Combined data for three years for two firms appear below (in millions). One of these firms is Amazon.com, a rapidly growing internet retailer, and the other is Kroger, a retail grocery store chain...
Most economists describe three determinants of the interest rates on a borrower's debt: a real interest rate, which is a charge for using capital; an adjustment for expected inflation to insure that...
Some asset valuations using historical costs are highly relevant and very reliable, whereas others may be reliable but lack relevance. Some asset valuations based on fair values are highly relevant...
MPS Corporation manufactures and sells holiday towels. The number and unit price of the towels increase substantially during the third quarter. An accounting clerk has prepared the following sales...
Financial statement analysis is a process whereby the basic financial statements are reviewed and evaluated to assess a firms financial health and/or performance. Calculating financial ratios is an...
Many corporations finance at least a part of their operations and asset purchases using debt, principally because the cost of debt financing is cheaper than equity financing. Moreover, some firms are...

Consider a simple traction whereby an investor purchases 20 million worth of US dollars spot from your

Question:

Expert Answer:

a This is a spot foreign exchange transaction where the investor is purchasing US dollars ... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

Students also viewed these finance questions